BILL ANALYSIS AB 2733 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2733 (Ruskin) As Amended August 18, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |67-0 |(May 24, 2010) |SENATE: |30-1 |(August 20, | | | | | | |2010) | ----------------------------------------------------------------- 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