BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 602| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 602 Author: Padilla (D), et al Amended: 5/28/09 Vote: 21 SENATE HEALTH COMMITTEE : 7-3, 4/15/09 AYES: Alquist, Cedillo, DeSaulnier, Leno, Negrete McLeod, Pavley, Wolk NOES: Strickland, Aanestad, Cox NO VOTE RECORDED: Maldonado SENATE REVENUE & TAXATION COMMITTEE : 5-3, 4/22/09 AYES: Wolk, Alquist, Florez, Padilla, Wiggins NOES: Walters, Ashburn, Runner SENATE APPROPRIATIONS COMMITTEE : 7-5, 5/28/09 AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza, Yee NOES: Cox, Denham, Runner, Walters, Wyland NO VOTE RECORDED: Wolk SUBJECT : Retail tobacco sales: violations SOURCE : Author DIGEST : This bill repeals the current restrictions that limits the Board of Equalizations (BOE) enforcement actions against retail tobacco license holders, requires enforcement agencies to notify BOE of retailers' violations of underage sales laws, and strengthens penalties on CONTINUED SB 602 Page 2 retailers convicted of furnishing products to people under the age of 18. ANALYSIS : Existing law, the Stop Tobacco Access to Kids Enforcement Act (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 BOE action, on a set schedule, relating to the licensure of the retailer when the youth purchase survey finds that 13 percent or more of youth are able to purchase cigarettes, and makes BOE's authority inoperative when a youth purchase survey shows less than 13 percent of youth were able to purchase cigarettes. This bill allows BOE 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 requires BOE to take appropriate action upon that notification. This bill deletes provisions of law that prohibit BOE from issuing a new cigarette and tobacco products license for a retail location in an "area of overconcentration," and specifies penalty amounts for violations of the STAKE Act ($750 for a first conviction and $1,500 for a second conviction. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the most recent Senate Appropriations Committee analysis: Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund BOE: Stake Act Unknown administrative costs, SB 602 Page 3 likelySpecial*/ in the range of $250-$500 annuallyGeneral Department of Public $89 $178 $178Special*/ Health: tracking/reporting General of STAKE Act violations Law enforcement Unknown reimbursable mandate costs,General reporting (local mandate) likely in the range of $300-$500 annually STAKE Act: penalties Unknown penalty revenue gains, Special* potentially in the range of $1,000-$2,000 annually * Cigarette and Tobacco Products Compliance Fund; also General Fund, other tobacco tax special funds SUPPORT : (Verified 5/29/09) American Cancer Society American Heart Association Breathe California California Dental Association California Medical Association Magna Systems Incorporated OPPOSITION : (Verified 5/29/09) (prior version of bill) California Grocers Association California Independent Grocers Association CTW:mw 5/29/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****