BILL NUMBER: SB 602	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Padilla

                        FEBRUARY 27, 2009

   An act to amend Section 22974.8 of, and to add Section 22973.3 to,
the Business and Professions Code, relating to retail tobacco sales.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 602, as introduced, Padilla. Retail tobacco sales: licenses.
   The California Cigarette and Tobacco Products Licensing Act of
2003 requires a retailer to obtain a license from the State Board of
Equalization to engage in the sale of cigarette and tobacco products
in this state, requires a retailer to obtain a separate license for
each retail location, and authorizes the board to suspend or revoke
the license of any retailer that is in violation of the act.
   This bill would prohibit the board from issuing a new license to a
retailer for a retail location in an area of overconcentration, as
defined.
   Existing law, the Stop Tobacco Access to Kids Enforcement Act or
STAKE Act, establishes various requirements for retailers relating to
tobacco sales to minors. Existing law also makes it a misdemeanor
for a retailer to knowingly or under circumstances in which it has
knowledge, or should otherwise have grounds for knowledge, sell,
give, or in any way furnish a minor with tobacco products or
paraphernalia. Under existing law, violation of the STAKE Act or the
misdemeanor provision result in board action, on a set schedule,
relating to the licensure of the retailer when the youth purchase
survey finds that 13% or more of youth are able to purchase
cigarettes, and makes the board's authority inoperative when a youth
purchase survey shows less than 13% of youth were able to purchase
cigarettes.
   This bill would allow the board to take action relating to the
licensure of retailers who have violated the STAKE Act and
misdemeanor provisions at any time, would require the enforcing
agency to notify the board of a conviction of a violation in a timely
manner, and would delete the provision conditioning the board's
authority to take action against retailers on the results of a youth
purchase survey.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22973.3 is added to the Business and
Professions Code, to read:
   22973.3.  (a) The State Board of Equalization shall not issue a
new license to a retailer for a retail location in an area of
overconcentration.
   (b) For purposes of this section "area of overconcentration" means
an area where the ratio of retail licenses to population in the
census tract is greater than the ratio of retail licenses to
population in the county overall.
  SEC. 2.  Section 22974.8 of the Business and Professions Code is
amended to read:
   22974.8.  (a) (1) The board shall take action against a retailer,
convicted of a violation of either the  Stake  
STAKE  Act (Division 8.5 (commencing with Section 22950) or
Section 308 of the Penal Code, according to the schedule set forth in
subdivision (b).
   (2) Convictions of violations by a retailer at one retail location
may not be accumulated against other locations of that same
retailer.
   (3) Convictions of violations accumulated against a prior retail
owner at a licensed location may not be accumulated against a new
retail owner at the same retail location.
   (4) 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 either the
STAKE Act (Division 8.5 (commencing with Section 22950) or Section
308 of the Penal Code, the retailer shall receive a warning letter
from the board that delineates the circumstances under which a
retailer's license may by suspended or revoked and the amount of time
the license may be suspended or revoked. The retailer and its
employees shall receive training on tobacco control laws from the
 State  Department of  Public  Health 
Services  upon a first conviction.
   (2) Upon the second conviction of a violation of either the STAKE
Act (Division 8.5 (commencing with Section 22950)) or Section 308 of
the Penal Code within 12 months, the retailer shall be subject to a
fine of five hundred dollars ($500).
   (3) Upon the third conviction of a violation of either the STAKE
Act (Division 8.5 (commencing with Section 22950)) or Section 308 of
the Penal Code within 12 months, the retailer shall be subject to a
fine of one thousand dollars ($1,000).
   (4) Upon the fourth to the seventh conviction of a violation of
either the STAKE Act (Division 8.5 (commencing with Section 22950))
or Section 308 of the Penal Code within 12 months, the board shall
suspend the retailer's license to sell cigarette and tobacco products
for 90 days.
   (5) Upon the eighth conviction of a violation of the STAKE Act
(Division 8.5 (commencing with Section 22950) or Section 308 of the
Penal Code within 24 months, 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. 
   (d) The board's authority to take action against retailers, as set
forth in this section, commences on the date of the release of the
results from the survey undertaken by the Department of Health
Services pursuant to Section 22952 of the Business and Professions
Code Section 22952 to comply with Section 1926 of Title XIX of the
federal Public Health Service Act (42 U.S.C. 300x-26), and any
implementing regulations adopted in relation thereto by the United
States Department of Health and Human Services, showing that the
youth purchase survey finds that 13 percent or more of youth were
able to purchase cigarettes. The board's authority to take action
under this section is inoperative on or after the date of the
subsequent release of the results from the survey showing that less
than 13 percent of youth were able to purchase cigarettes. 

   (d) For any conviction of a violation of either the STAKE Act
(Division 8.5 (commencing with Section 22950) or Section 308 of the
Penal Code, the State Department of Public Health or other enforcing
agency shall notify the board of the conviction in a timely manner.