CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 957Introduced by Assembly Member OrtegaFebruary 20, 2025 An act to amend Section 22973.1 of, and to add Article 26 (commencing with 4428) to Chapter 9 of Division 2 of, the Business and Professions Code, relating to cigarette and tobacco products. LEGISLATIVE COUNSEL'S DIGESTAB 957, as introduced, Ortega. Cigarette and tobacco products: retail sale: pharmacies.Existing law, the Cigarette and Tobacco Products Licensing Act of 2023, requires a retailer to hold a license from the State Board of Equalization to engage in the sale of cigarettes or tobacco products, and makes a violation of those provisions a misdemeanor and subject to specified other penalties. Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy, and makes a violation of the Pharmacy Law a misdemeanor.This bill would prohibit a pharmacy from engaging in the retail sale of cigarettes or tobacco products. Because a violation of the bills provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Article 26 (commencing with Section 4428) is added to Chapter 9 of Division 2 of the Business and Professions Code, to read: Article 26. Sale of Cigarettes or Tobacco Products4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971. SEC. 2. Section 22973.1 of the Business and Professions Code is amended to read:22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 957Introduced by Assembly Member OrtegaFebruary 20, 2025 An act to amend Section 22973.1 of, and to add Article 26 (commencing with 4428) to Chapter 9 of Division 2 of, the Business and Professions Code, relating to cigarette and tobacco products. LEGISLATIVE COUNSEL'S DIGESTAB 957, as introduced, Ortega. Cigarette and tobacco products: retail sale: pharmacies.Existing law, the Cigarette and Tobacco Products Licensing Act of 2023, requires a retailer to hold a license from the State Board of Equalization to engage in the sale of cigarettes or tobacco products, and makes a violation of those provisions a misdemeanor and subject to specified other penalties. Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy, and makes a violation of the Pharmacy Law a misdemeanor.This bill would prohibit a pharmacy from engaging in the retail sale of cigarettes or tobacco products. Because a violation of the bills provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 957
Introduced by Assembly Member OrtegaFebruary 20, 2025
Introduced by Assembly Member Ortega
February 20, 2025
An act to amend Section 22973.1 of, and to add Article 26 (commencing with 4428) to Chapter 9 of Division 2 of, the Business and Professions Code, relating to cigarette and tobacco products.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 957, as introduced, Ortega. Cigarette and tobacco products: retail sale: pharmacies.
Existing law, the Cigarette and Tobacco Products Licensing Act of 2023, requires a retailer to hold a license from the State Board of Equalization to engage in the sale of cigarettes or tobacco products, and makes a violation of those provisions a misdemeanor and subject to specified other penalties. Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy, and makes a violation of the Pharmacy Law a misdemeanor.This bill would prohibit a pharmacy from engaging in the retail sale of cigarettes or tobacco products. Because a violation of the bills provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Cigarette and Tobacco Products Licensing Act of 2023, requires a retailer to hold a license from the State Board of Equalization to engage in the sale of cigarettes or tobacco products, and makes a violation of those provisions a misdemeanor and subject to specified other penalties. Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy, and makes a violation of the Pharmacy Law a misdemeanor.
This bill would prohibit a pharmacy from engaging in the retail sale of cigarettes or tobacco products. Because a violation of the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Article 26 (commencing with Section 4428) is added to Chapter 9 of Division 2 of the Business and Professions Code, to read: Article 26. Sale of Cigarettes or Tobacco Products4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971. SEC. 2. Section 22973.1 of the Business and Professions Code is amended to read:22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Article 26 (commencing with Section 4428) is added to Chapter 9 of Division 2 of the Business and Professions Code, to read: Article 26. Sale of Cigarettes or Tobacco Products4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971.
SECTION 1. Article 26 (commencing with Section 4428) is added to Chapter 9 of Division 2 of the Business and Professions Code, to read:
### SECTION 1.
Article 26. Sale of Cigarettes or Tobacco Products4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971.
Article 26. Sale of Cigarettes or Tobacco Products4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971.
Article 26. Sale of Cigarettes or Tobacco Products
Article 26. Sale of Cigarettes or Tobacco Products
4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971.
4428. A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971.
SEC. 2. Section 22973.1 of the Business and Professions Code is amended to read:22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
SEC. 2. Section 22973.1 of the Business and Professions Code is amended to read:
### SEC. 2.
22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:(A) It has been more than five years since a previous license for the retail location was revoked.(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
22973.1. (a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:
(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.
(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:
(A) It has been more than five years since a previous license for the retail location was revoked.
(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arms length transaction. For purposes of this section, an arms length transaction is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at arms length.
(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.
(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.
(5) The retailer is a pharmacy licensed pursuant to the Pharmacy Act (Chapter 9 (commencing with Section 4000) of Division 2).
(b) (1) Any retailer who is denied a license may petition for a redetermination of the boards denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.
(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.
(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.
(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.