BILL ANALYSIS AB 2733 Page 1 Date of Hearing: May 19, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2733 (Ruskin) - As Amended: May 12, 2010 Policy Committee: Governmental Organization Vote: 17 - 0 Judiciary 9 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill would make the following changes to the Cigarette and Tobacco Products Licensing Act of 2003: 1)Require all cigarettes and tobacco products to be removed from clearly and easily visible retail stock during a period of suspension or after a license has been revoked. 2)Require a suspended or revoked licensee to post a notice of that suspension or revocation at each public entrance and each cash register, as provided. 3)Prohibit licensees who purchased cigarettes or tobacco products for resale under their license from gifting such products during the period of suspension or after a license has been revoked. FISCAL EFFECT 1)Workload costs for the Board of Equalization would be minor and absorbable within existing resources. 2)Potential minor nonreimbursable costs to counties for prosecution and incarceration related to violations of the bill's provisions, offset to some extent by fine revenues. (The bill expands provisions of current law, the violation of which is a misdemeanor.) COMMENTS AB 2733 Page 2 Purpose . This bill is intended to establish clear prohibitions against a licensee displaying or giving away their cigarette products if their tobacco license has been suspended or revoked. According to the sponsor, the Board of Equalization, this bill is intended to ensure that persons or entities licensed to sell or distribute cigarettes and tobacco products do not continue to do so during a period of license suspension or revocation and to clarify just what licensees (or former licensees) can or cannot do during a period of suspension or revocation. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081