BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 2733
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 2733 (Ruskin)
        As Amended  August 18, 2010
        Majority vote
         
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        |ASSEMBLY:  |67-0 |(May 24, 2010)  |SENATE: |30-1 |(August 20,    |
        |           |     |                |        |     |2010)          |
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         Original Committee Reference:    G.O.  

         SUMMARY  :  Amends the California Cigarette and Tobacco Licensing Act  
        (Act) to prohibit a licensee whose license has been suspended or  
        revoked from giving cigarette and tobacco products away or displaying  
        those products during the period of license suspension or revocation,  
        as specified. 

         The Senate amendments  :

        1)Make technical and clarifying changes.

        2)Add a contingency clause to avoid chaptering problems with AB 2496  
          (Nava) relating to cigarette and tobacco products.  
         
         EXISTING LAW  :

        1)Establishes the Act and provides for the licensure by the California  
          State 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.

         AS PASSED BY THE ASSEMBLY  , this bill prohibited 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 Act and the transfer occurs without a license or after receipt  
        of a notice of suspension or revocation of the license.







                                                                AB 2733
                                                                Page  2


         FISCAL EFFECT  :  According to the Senate Appropriations Committee,  
        pursuant to Senate Rule 28.8, negligible state costs.  In addition,  
        the BOE states that this bill would not affect the state's revenues.

         COMMENTS  :  This bill would prohibit a license holder from gifting or  
        displaying for sale cigarettes or tobacco products during a period of  
        suspension or after revocation of a license.  
         
        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 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.

         Analysis Prepared by  :  Rod Brewer / G.O. / (916) 319-2531   FN:  
        0006573