BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 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





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          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,  







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          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  ****