BILL ANALYSIS
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THIRD READING
Bill No: AB 2733
Author: Ruskin (D), et al
Amended: 7/15/10 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 3-0, 6/23/10
AYES: Wolk, Alquist, Padilla
NO VOTE RECORDED: Walters, Ashburn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 67-0, 5/24/10 - See last page for vote
SUBJECT : Cigarettes and tobacco products
SOURCE : State Board of Equalization
DIGEST : This bill prohibits the transfer of title or
possession of cigarettes or tobacco products without
consideration, exchange, or barter if the cigarettes or
tobacco products had been purchased for resale under a
license issued pursuant to the California Cigarette and
Tobacco Products Licensing Act and the transfer occurs
without a license or after receipt of a notice of
suspension or revocation of the license.
ANALYSIS :
Existing law
CONTINUED
AB 2733
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1. Establishes the California Cigarette and Tobacco
Products Licensing Act and provides for the licensure by
the Board of Equalization (BOE) of manufacturers,
distributors, wholesalers, importers, and retailers of
cigarette or tobacco products that are engaged in
business in California.
2. Prohibits retailers, manufacturers, distributors, and
wholesalers from distributing or selling cigarettes and
tobacco products unless they are licensed.
3. Authorizes the BOE to suspend or revoke the license of
any manufacturer, distributor, wholesaler, importer, or
retailer of tobacco products that is in violation of the
law.
This bill makes the following changes to the Cigarette and
Tobacco Products Licensing Act of 2003 (Licensing Act):
1. Requires 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been revoked.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. Requires 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. Prohibits 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license has been revoked.
4. Imposes prescribed notices to be posted when a license
has been posted when a license has been suspended or
revoked by the BOE, and makes violation of these
posting requirements subject to a civil penalty of
$1,000 for each offense.
Comments
According to the BOE, the sponsor, this bill is intended to
provide the necessary clarification to licensees that
gifting cigarettes or tobacco products or the displaying of
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such products in retail stock in a retail sales area is
prohibited during periods of license suspension or
revocation, thus avoiding further violations of the Act.
These types of violations of the Act are punishable, in
part, by the seizure and forfeiture of all cigarettes and
tobacco products, which can have a substantial financial
effect on the licensee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/3/10)
State Board of Equalization (source)
Breathe California
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
La Torre, De Leon, DeVore, Emmerson, Eng, Feuer,
Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gilmore, Hagman, Harkey, Hayashi,
Hill, Huber, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma,
Mendoza, Miller, Monning, Nestande, Niello, Nielsen, V.
Manuel Perez, Portantino, Ruskin, Salas, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Evans, Hall, Hernandez, Jeffries,
Knight, Logue, Nava, Norby, Saldana, Silva, Villines,
Vacancy
RJG:do 8/3/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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