BILL NUMBER: SB 1700 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 22, 2002
AMENDED IN SENATE MAY 1, 2002
AMENDED IN SENATE APRIL 18, 2002
INTRODUCED BY Senator Peace
FEBRUARY 21, 2002
An act to add Division 8.6 (commencing with Section 22970) to the
Business and Professions Code, and to amend Section 30473.5 of
the Revenue and Taxation Code, relating to tobacco.
LEGISLATIVE COUNSEL'S DIGEST
SB 1700, as amended, Peace. Tobacco products.
Existing law vests the State Department of Health Services with
primary responsibility for enforcement of tobacco control laws
prohibiting the sale of tobacco products to minors, and requires the
department to conduct random onsite inspections at retail sites.
Existing law, the Cigarette and Tobacco Products Tax Law, requires
distributors and wholesales of cigarette and tobacco products to be
licensed by the State Board of Equalization. The Cigarette and
Tobacco Tax Law also requires a tax imposed by the law with respect
to distributions of cigarettes to be paid by distributors through the
use of stamps or meter impressions. Possession, selling, or buying
false or fraudulent stamps or meter impressions with a tax value
greater than $750 is a crime.
This bill would provide for the licensure by the State Board of
Equalization of manufacturers, distributors, wholesalers, and
retailers of cigarette and tobacco products that are engaged in
business in California. The bill would prohibit retailers,
manufacturers, distributors, and wholesalers from distributing or
selling those cigarette and tobacco products unless they are
licensed. The bill would require manufacturers of cigarette and
tobacco products that provide those products to distributors or
wholesalers to pay the board a fee for each pack of cigarettes sold.
The bill would require all moneys collected pursuant to its
provisions to be deposited in the Cigarette and Tobacco Products
Control Fund, which would be created in the State Treasury, and all
funds therein would be available for appropriation by the Legislature
for specified purposes. The bill would authorize the board to
assess administrative fines and to suspend or revoke the license of
any retailer of tobacco products that is in violation of the
retailer provisions and bill or the laws
prohibiting the sale of cigarette and tobacco products to minors.
The bill would prohibit a manufacturer, distributor, wholesaler,
or retailer from selling counterfeit cigarette and tobacco products
and would provide that a 2nd violation of that
prohibition is a felony crime .
The bill would impose specified fines or imprisonment for possessing,
selling, or buying false or fraudulent cigarette tax stamps.
The bill, until January 1, 2007, would preempt any local ordinance
that requires a retailer to obtain a license to sell cigarette and
tobacco products, but would authorize allow
stricter local ordinances thereafter.
Because a 2nd violation of this bill's
prohibition against selling counterfeit cigarette and tobacco
products the bill would be a felony
crime , the bill would impose a state-mandated
local program by creating a new crime .
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 8.6 (commencing with Section 22970) is added
to the Business and Professions Code, to read:
DIVISION 8.6. TOBACCO CONTROL
CHAPTER 1. GENERAL PROVISIONS
22970. The Legislature finds and declares all of the following:
(a) Youth consumption of cigarette and tobacco products is a
serious public health problem.
(b) Eliminating youth access to and consumption of cigarette and
tobacco products is a significant statewide public health goal.
(c) Uniform statewide licensure to reduce youth access to and
consumption of cigarette and tobacco products is necessary to
guarantee the protection of children.
(d) Uniform statewide licensure of retail cigarette and tobacco
sales enhances a retailer's ability to eliminate cigarette and
tobacco sales to minors by reducing overlap and confusion and reduces
costs of compliance.
(c)
(e) The licensure provisions of this chapter are intended to
supplement and enhance existing provisions of law and penalties for
illegal sales of tobacco products but are not intended to supplant
those provisions or penalties.
22971. For purposes of this division, the following terms shall
have the following meanings:
(a) "Board" means the State Board of Equalization.
(b) "Department" means the State Department of Health Services.
(c) "Distributor" means a distributor as defined in Section 30011
of the Revenue and Taxation Code.
(d) "Manufacturer" means a manufacturer of cigarette and tobacco
products.
(e) "Retailer" means a retailer of cigarette and tobacco products.
(f) "Wholesaler" means a wholesaler as defined in Section 30016 of
the Revenue and Taxation Code.
(g) "Cigarette" means any roll for smoking, made wholly or in part
of tobacco, irrespective of size or shape and irrespective of
whether the tobacco is flavored, adulterated or mixed with any other
ingredient, where the roll has a wrapper or cover made of paper or
any other material, except where the wrapper is wholly or in the
greater part made of tobacco and the roll weighs over three pounds
per thousand.
(h) "License" means a license authorized to be issued by the board
pursuant to this division.
(i) "Licensee" means any person holding a license issued by the
board pursuant to this division.
(j) "Sale" includes any transfer of title or possession for a
consideration, exchange or barter, in any manner or by any means.
(k) "Tobacco products" includes, but is not limited to, all forms
of cigars, smoking tobacco, chewing tobacco, snuff, and any other
articles of products made of, or containing at least 50 percent
tobacco, but does not include cigarettes.
(l) "Unstamped package of cigarettes" means a package of
cigarettes that does not bear a tax stamp pursuant to Part 13
(commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code, or that bears a tax stamp of another state or taxing
jurisdiction.
(m) "Unlawfully stamped package of cigarettes" means a package of
cigarettes bearing a counterfeit California state tax stamp.
(n) "Untaxed tobacco products" means any tobacco product upon
which the tobacco products surtax has not been paid pursuant to Part
13 (commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code.
(o) "Person" includes any individual, firm, partnership, joint
venture, limited liability company, association, social club,
fraternal organization, corporation, estate, trust, business trust,
receiver, trustee, syndicate, this state, any county, city and
county, municipality, district, or other political subdivision of the
state, or any other group or combination acting as a unit.
CHAPTER 2. RETAILERS, WHOLESALERS, AND DISTRIBUTORS
OF CIGARETTE AND TOBACCO PRODUCTS
22975. (a) Commencing January 1, 2004, a retailer that
sells cigarette and tobacco products in this state shall obtain from
the board a valid retailer's license to sell
cigarette and tobacco products and shall maintain that license
on the premises for which the license was issued . A retailer
that owns or controls more than one retail location where cigarette
and tobacco products are sold to the public shall
obtain a separate license for each retail location, but may submit a
single application for those licenses.
(b) The license obtained pursuant to subdivision (a) shall be
conspicuously displayed at the place of business for which it was
issued. A licensee that has no regular place of business shall
conspicuously display a certificate prescribed by the board on each
of its carts, stands, trucks, or other merchandising devices through
which it sells cigarettes or tobacco products in this state.
(c) Every person that owns or, if the owner is not the operator,
the person that operates one or more vending machines through which
cigarettes or tobacco products are sold in this state, regardless of
whether located on the premises of the vending machine owner or, if
the owner is not the operator, the premises of the operator or the
premises of any person, shall register each vending machine with the
board. On or after January 1, 2004, a vending machine registration
certificate, in the form as may be prescribed by the board, shall be
affixed to each machine through which cigarettes or tobacco products
are sold in this state.
22976. The application for a retailer license
to sell cigarette and tobacco products shall be on a form
provided prescribed by the board and shall
include the following information:
(a) The name, address, and telephone number of the applicant.
(b) The business name, address, and telephone number of each
retail location where cigarette and tobacco products will be sold to
the public.
(c) Any other information the board may require.
22977. (a) A retailer is qualified for a license and the board
shall issue the license to the retailer when the board receives a
completed application, unless the retailer has previously been issued
a license for that location and is currently
serving a suspension of the previously issued license. A
copy of the license shall be available at the location for which the
license was issued.
(b) A retailer applying for a license after completing a
suspension pursuant to this division shall not be issued a license
until any unpaid taxes required pursuant to Part 13 (commencing
with Section 30001) of Division 2 of the Revenue and Taxation Code
and fees required pursuant to this division are
paid.
(c) The board may revoke the registration of a person or refuse to
register an application for a license for a location that is the
same premises as that of a person whose registration is revoked or
whose revocation is pending, unless the person applying provides the
board with adequate documentation demonstrating that the person
acquiring the premises or business is in an arms length transaction.
For purposes of this section, an "arms length transaction" means 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 where neither party is 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 on the premises, is presumed not to be an arms length
transaction.
(d) Any person or licensee convicted of a felony pursuant to
Section 30480 of Revenue and Taxation Code shall not be granted a
license, or if a person holds a license, that license shall be
revoked.
22977.1. A retailer shall retain proof of
purchase for invoices pursuant to Section
22978.1 for all cigarette and tobacco products ,
including the name, address, and license number of the distributor
that supplied the products for a period of one year from the date of
purchase.
22978. The retailer's license to sell cigarette and tobacco
products is not transferable to a new person or entity or to a new
location. purchased. The records shall be maintained
for a period of one year from the date of purchase on the premises
for which the license was issued and thereafter shall be made
available for a period of three years. Any licensee found to be in
violation of these requirements shall be subject to penalties
pursuant to Section 22991.
22977.2. (a) A person that engages in business of selling
cigarettes or tobacco products in this state without a license or
after a license has been suspended or revoked, and each officer of
any corporation which so engages in business, is guilty of a
misdemeanor punishable as provided in Section 22991.
(b) Each day that a retailer offers cigarette and tobacco products
for sale or exchange without a valid license for the location from
which they are sold shall constitute a separate violation.
22978. (a) A distributor or wholesaler, or a distributor
functioning as a wholesaler, shall not sell cigarette and tobacco
products to a retailer, wholesaler, or distributor, or a distributor
functioning as a wholesaler, for distribution or sale in this state
unless the retailer, wholesaler, or distributor is properly licensed.
Any distributor or wholesaler found in violation of these
requirements shall be subject to penalties pursuant to Section 22991.
(b) A distributor or wholesaler shall not sell cigarette and
tobacco products to any licensee whose license has been suspended or
revoked.
(c) Each separate sale to an unlicensed retailer shall constitute
a separate violation.
22978.1. (a) Every distributor or wholesaler shall include the
following information on each invoice for the sale of cigarette and
tobacco products:
(1) The name, address, and telephone number of the distributor or
wholesaler.
(2) The state license number of the distributor or wholesaler as
provided by the board.
(3) The name, address, and retailer's license number of each
customer.
(4) The amount of excise taxes paid by the distributor or
wholesaler on the sale of cigarette and tobacco products.
(5) An itemized listing of the products sold.
(b) Each distributor and wholesaler of cigarette and tobacco
products subject to licensing under this division shall maintain for
a period of four years accurate and complete records relating to the
sale of cigarette and tobacco products, including, but not limited
to, receipts, invoices, and other records required by the board.
(c) Failure to comply with the provisions of this section shall be
a misdemeanor subject to penalties pursuant to Section 22991.
22979. (a) Except as provided in Section 22981, the board shall
take action against a retailer convicted of a violation of the STAKE
Act (Division 8.5 (commencing with Section 22950)) or
, Section 308 of the Penal Code , or this
division according to the schedule set forth in subdivision
(b). Violations by a retailer at one retail location shall not be
accumulated against other locations of that same retailer.
Violations accumulated against a prior retail owner at a licensed
location shall not be accumulated against a new retail owner at the
same licensed location. Prior to suspending or revoking a retailer's
license to sell cigarette and tobacco products, the board shall
notify the retailer. The notice shall include instructions for
appealing the license suspension or revocation.
(b) (1) Upon the first conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950)) or
, Section 308 of the Penal Code, or this division,
the retailer shall receive a warning letter from the
board that delineates the circumstances under which a
retailer's license may be suspended and the amount of time the
license may be suspended. The retailer and its employees shall
receive training on tobacco control laws from the department upon a
first conviction.
(2) Upon the second conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950)) or
, Section 308 of the Penal Code , or this division
within 12 months five years , the
retailer shall be subject to a fine of not
to exceed five hundred dollars ($500) and a 30-day
suspension of the license to sell cigarette and tobacco products
.
(3) Upon the third conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950)) or
, Section 308 of the Penal Code , or this division
within 24 months five years , the
retailer shall be subject to a fine of not
to exceed one thousand dollars ($1,000) and a 90-day
suspension of the license to sell cigarette and tobacco products
.
(4) Upon the fourth conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950)) or
, Section 308 of the Penal Code , or this division
within 36 months, the board shall suspend the retailer'
s license to sell cigarette and tobacco products for 90 days.
five years, the licensee shall be subject to a fine
not to exceed one thousand dollars ($1,000) and a one-year suspension
of the license to sell cigarette and tobacco products.
(5) Upon the fifth conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950) or
22950)), Section 308 of the Penal Code , or this
division within 48 months five years
, the board shall revoke the retailer's license to sell
cigarette and tobacco products.
(c) The decision of the board to suspend or revoke the
retailer's license may be appealed to the board within 30 days after
the notice of suspension or revocation. All appeals shall be
submitted in writing. The final decision to suspend or
revoke the retailer's license may be appealed to the board within 30
days after the action becomes final. All appeals shall be submitted
in writing. The timely filing of an appeal to the board shall
prohibit a license suspension or revocation and the payment of an
administrative fine until the appeal is heard and decided. Once the
appeal is heard and decided, a license suspension or revocation
upheld by the board on appeal shall be effective on the date of the
board's decision and an administrative fine upheld by the board shall
be paid within 10 days of the board's decision. In the absence of
an appeal to the board, a license suspension or revocation shall be
effective and an administrative fine shall be paid 31 days after
notice from the board or after the suspension or revocation action
becomes final.
22980. (a) Notwithstanding any other provision of this division,
the sale or possession for sale of counterfeit
cigarette and tobacco products , or the sale or
possession for sale of counterfeit cigarettes or unstamped packages
of cigarettes, by a retailer shall result in the
following action seizure of the product by the board
or any law enforcement agency and shall constitute a misdemeanor
punishable as follows :
(1) For the first violation, the board shall issue a warning
letter to the retailer.
(2) A second violation shall be a crime punishable as a felony and
shall also result in the revocation of the retailer's license by the
board.
(1) A first violation with a total quantity of less than 10
cartons of cigarettes shall be a misdemeanor punishable by a fine not
to exceed one thousand dollars ($1,000) or imprisonment not to
exceed one year in a county jail, or both the fine and imprisonment.
(2) A second violation within five years with a quantity of less
than 10 cartons of cigarettes shall be a misdemeanor punishable by a
fine not to exceed five thousand dollars ($5,000) or imprisonment not
to exceed one year in a county jail, or both the fine and
imprisonment, and shall also result in the revocation by the board of
the retailer's license.
(3) A first violation with a total quantity of more than 10
cartons of cigarettes shall be a misdemeanor punishable by a fine not
to exceed two thousand dollars ($2,000) or imprisonment not to
exceed one year in a county jail, or both the fine and imprisonment.
(4) A second violation within five years with a quantity of 10
cartons of cigarettes or more shall be a misdemeanor punishable by a
fine not to exceed fifty thousand dollars ($50,000) or imprisonment
not to exceed one year in a county jail, or both the fine and
imprisonment, and shall also result in the revocation by the board of
the retailer's license.
(5) A court shall consider a defendant's ability to pay when
imposing fines pursuant to this section.
(b) The provisions of this section shall apply to the holder of
the retailer license and not to an employee of the licensee.
However, the retailer shall not be subject to the provisions of this
section if an employee of the retailer is selling counterfeit
cigarette and tobacco products without the retailer's knowledge.
(c) For purposes of this section, counterfeit cigarette and
tobacco products include cigarette and tobacco products that have
false manufacturing labels or cigarette packs without tax stamps or
with counterfeit tax stamps, or a combination thereof.
22981. The retailer's license to sell cigarette and tobacco
products shall be subject to the licensee requiring each employee
making retail sales of cigarette and tobacco products to successfully
complete a training program developed by the department on tobacco
control laws every 12 months.
22982. (a) The department shall develop the curriculum
requirements for the training programs that train retail sales clerks
regarding tobacco control laws, including prohibitions on the sale
of cigarette and tobacco products to minors. The department may
charge a fee to any person submitting a proposed training program
that covers the department's cost of reviewing the proposed training
program. All money collected by the department pursuant to this
section shall be deposited in the Cigarette and Tobacco Products
Control Fund.
(b) The department shall consult with representatives of cigarette
and tobacco products retailers and youth smoking prevention
advocates to develop tobacco control training programs. The programs
shall be developed by January 1, 2004.
22983. Upon suspending or revoking the license of a retailer
pursuant to this chapter, the board shall notify all licensed
distributors and wholesalers by fax and e-mail within 48 hours.
22984. (a) On and after January 1, 2004, the
requirements of this division for obtaining a license to sell retail
cigarette and tobacco products shall preempt any local government
ordinance that requires a retailer to obtain a license to sell
cigarette and tobacco products or to register with a local government
to sell cigarette and tobacco products. However, on and after
January 1, 2007, a local government may adopt an ordinance that is
more strict than the requirements of this chapter. Funding
(b) Funding from the Tobacco Control Fund shall not be made
available to a local government for purposes of enforcing that
ordinance.
(c) A local government entity may designate a local regulatory
authority to enforce the retail licensing provisions of this
division.
(d) Data collected by the board from retailers pursuant to the
licensing provisions of this division shall be shared with a
designated local regulatory agency if reasonably necessary for the
purposes of enforcing the retail licensing provisions of this
division.
CHAPTER 3. MANUFACTURERS, DISTRIBUTORS, AND WHOLESALERS OF
CIGARETTE AND TOBACCO PRODUCTS
22985. Commencing January 1, 2003, a manufacturer that provides
cigarette and tobacco products to a distributor or wholesaler or to a
distributor functioning as a wholesaler, for distribution and sale
in this state shall obtain and maintain a valid tobacco manufacturer'
s license from the board.
22986. Commencing January 1, 2003, a distributor or wholesaler,
or a distributor functioning as a wholesaler, that provides cigarette
and tobacco products for distribution and sale in this state shall
obtain and maintain a valid distributor's license or a valid
wholesaler's license from the board.
22987. (a) A manufacturer shall not sell cigarette and tobacco
products to a distributor or wholesaler, or a distributor functioning
as a wholesaler, for distribution or sale in this state unless the
distributor or wholesaler, or distributor functioning as a
wholesaler, is licensed pursuant to this division.
(b) A distributor or wholesaler, or distributor functioning as a
wholesaler, shall not sell cigarette and tobacco products to a
retailer or a wholesaler or distributor, or distributor functioning
as a wholesaler, for distribution or sale in this state unless the
retailer is licensed pursuant to this division.
(c) No distributor or wholesaler may sell cigarette and tobacco
products to any retailer whose license has been suspended or revoked
unless all existing cigarette or tobacco tax debts of the retailer
for the purchase of cigarette and tobacco products have been cleared.
The board shall determine the debt status of a suspended retailer
licensee 25 days prior to the reinstatement of the tobacco retailer's
license. A wholesaler or distributor may place a lien on the
retailer not later than 15 days prior to the reinstatement of a
suspended license.
(d) A distributor or wholesaler is relieved from liability for
cigarette and tobacco products taxes that became due and payable if
the measure of the tax is represented by accounts that have been
found to be worthless and charged off for income tax purposes, or if
the distributor or wholesaler is not required to file income tax
returns, that have been charged off in accordance with generally
accepted accounting principles. If the distributor or wholesaler has
previously paid the tax, the distributor or wholesaler may, under
regulations adopted by the board, take as a deduction the amount
found worthless and charged off. If any of those accounts are
thereafter in whole or in part collected by the distributor or
wholesaler, the amount so collected shall be included in the first
return filed after the collection, and the tax shall be paid with the
return.
22988. (a) Each distributor or wholesaler shall include the
following information on each invoice for the sale of cigarette and
tobacco products:
(1) The name, address, and telephone number of the distributor or
wholesaler.
(2) The state license number of the distributor or wholesaler as
provided by the board.
(3) The amount of excise taxes paid by the distributor or
wholesaler on the sale of cigarette and tobacco products.
(b) Each distributor and wholesaler of cigarette and tobacco
products subject to licensing under this chapter shall maintain
accurate and complete records relating to the sale of those products,
including, but not limited to, receipts, invoices, and other records
required by the board.
(c) Notwithstanding any other provision of this division, the sale
of counterfeit cigarette and or possession
for sale of counterfeit tobacco products , or the sale or
possession for sale of counterfeit cigarettes or unstamped packages
of cigarettes, by a manufacturer, distributor, or wholesaler
shall result in the following:
(1) For the first violation, the board shall issue a warning
letter to the manufacturer, distributor, or wholesaler.
(2) A second violation shall be a crime punishable as a felony and
shall also result in the revocation of the manufacturer,
distributor, or wholesale license. seizure of the
product by the board or any law enforcement agency and shall
constitute a misdemeanor punishable as follows:
(1) A first violation with a total quantity of less than 10
cartons of cigarettes shall be a misdemeanor punishable by a fine not
to exceed one thousand dollars ($1,000) or imprisonment not to
exceed one year in a county jail, or both the fine and imprisonment.
(2) A second violation within five years with a total quantity of
less than 10 cartons of cigarettes shall be a misdemeanor punishable
by a fine not to exceed five thousand dollars ($5,000), or
imprisonment not to exceed one year in a county jail, or both the
fine and the imprisonment, and shall also result in the revocation by
the board of the manufacturer, distributor, or wholesale license.
(3) A first violation with a total quantity of more than 10
cartons of cigarettes shall be a misdemeanor punishable by a fine not
to exceed two thousand dollars ($2,000) or imprisonment not to
exceed one year in a county jail, or both the fine and imprisonment.
(4) A second violation within five years with a quantity of 10
cartons of cigarettes or more shall be a misdemeanor punishable by a
fine not to exceed fifty
thousand dollars ($50,000) or imprisonment not to exceed one year in
a county jail, or both the fine and imprisonment, and shall also
result in the revocation by the board of the manufacturer,
distributor, or wholesale license.
(5) A court shall consider a defendant's ability to pay when
imposing fines pursuant to this section.
(d) For the purposes of this section, counterfeit cigarette and
tobacco products includes cigarette and tobacco products that have
false manufacturing labels or cigarette packs without tax stamps or
with counterfeit tax stamps or a combination thereof.
22989. (a) In addition to any other tax or fee, a manufacturer
shall pay a fee of not to exceed two cents ($0.02), as determined by
the board, on or before March 1, 2003, to the board for each pack of
cigarettes that was sold to a distributor or wholesaler for
distribution or sale in this state in 1998. The board shall notify
each manufacturer of the amount due under this section on or before
January 31, 2003.
(b) This section shall only apply to manufacturers who signed the
tobacco master settlement agreement.
(c) This section shall become inoperative, and shall be repealed,
on January 1, 2004, unless a later enacted statute that is enacted
before January 1, 2004, deletes or extends the date on which it
becomes inoperative and is repealed.
22989. (a) In addition to any other tax or fee, a manufacturer
shall pay a fee not to exceed two cents ($0.02), as determined by the
board, for each pack of cigarettes that was sold to a distributor or
wholesaler for distribution or sale in this state in the prior
calendar year.
(b) This section shall become operative on January 1, 2004.
CHAPTER 4. MISCELLANEOUS
22990. All moneys collected pursuant to this division shall be
deposited in the Cigarette and Tobacco Products Control Fund, which
is hereby created in the State Treasury. All funds in the Cigarette
and Tobacco Products Control Fund are available for expenditure, upon
appropriation by the Legislature, for the following purposes:
(a) To the board for the administration and investigation of the
programs relating to the issuance and use of cigarette tax stamps,
cigarette and tobacco products retailer's licenses, cigarette and
tobacco products wholesaler's licenses, cigarette and tobacco
products distributor's licenses, and cigarette and tobacco
manufacturer's licenses. Included in those costs shall be
reimbursement to licensed distributors and wholesalers for the actual
cost of labor for applying indicia or impressions, bonding cost,
warehouse space, and stamping equipment lease, including case cutters
and packers. The board shall adjust reimbursement to the
distributor or wholesaler to reflect those actual costs when renewing
its contract for cigarette indicia or impressions.
(b) To the department for costs related to controlling youth
access to cigarette and tobacco products.
(c) To the Bureau of Investigation of the Department of Justice
for criminal investigative activities associated with criminal
activity in the sale of cigarette or tobacco products or counterfeit
cigarette or tobacco products.
22991. Upon confiscating cigarette or tobacco products,
the board shall return the products to the licensed distributor that
paid the tax on the products. Any violation of this
division by any person, except as otherwise provided, is a
misdemeanor. Each offense shall be punished by a fine not to exceed
five thousand dollars ($5,000), or imprisonment not exceeding one
year in a county jail, or both the fine and imprisonment.
22992. Any prosecution for a violation of any of the penal
provisions of this division shall be instituted within five years
after the commission of the offense or within two years after the
violation is discovered, whichever is later.
SEC. 2. Section 30473.5 of the Revenue and Taxation Code is
amended to read:
30473.5. (a) Any person who possesses, sells, or
offers to sell, or buys or offers to buy, any false or fraudulent
stamps or meter impressions provided for or authorized under this
part with a tax value greater than seven hundred fifty
dollars ($750) in a quantity of less than 2000
is guilty of a misdemeanor , punishable by a fine not to exceed
five thousand dollars ($5,000) or imprisonment not exceeding one year
in a county jail, or by both the fine and imprisonment .
(b) Any person who, with intent to defeat or evade or with the
intent to aid another to defeat or evade the taxes imposed by this
part, possesses, sells, or offers to sell, buys or offers to buy, any
false or fraudulent stamps or meter impressions provided for or
authorized under this part in a quantity of 2000 or greater, is
guilty of a misdemeanor, punishable by a fine not to exceed fifty
thousand dollars ($50,000) or imprisonment not exceeding one year in
a county jail, or by both the fine and imprisonment.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution. ____ CORRECTIONS Text
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