BILL NUMBER: AB 1030 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Achadjian
FEBRUARY 18, 2011
An act to add Article 3.5 (commencing with Section 30133) to
Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1030, as introduced, Achadjian. Cigarette and tobacco taxes:
violation: penalties.
The California Cigarette and Tobacco Products Licensing Act of
2003 provides for the licensure, by the State Board of Equalization,
of manufacturers, distributors, wholesalers, importers, and retailers
of cigarette or tobacco products that are engaged in business in
California and prohibits retailers, manufacturers, distributors, and
wholesalers from distributing or selling those cigarette and tobacco
products unless they are in compliance with those licensure
requirements.
The Cigarette and Tobacco Products Tax Law imposes a tax on the
distribution of tobacco products and on the distribution of
cigarettes, which are paid through the use of stamps or meter
impressions that are required to be affixed to each package of
cigarettes sold. The Cigarette and Tobacco Products Tax Law requires
that certain cigarette and tobacco products be forfeited to the state
under specified circumstances, upon seizure by the State Board of
Equalization.
This bill would subject a person who fails to pay a tax liability
in violation of the Cigarette and Tobacco Products Tax Law to
suspension of any distributor's license and seizure of any assets
related to tobacco distribution. The bill would require the board to
hold a hearing on the suspension or seizure and, upon confirmation of
the violation, would allow the board to revoke the license and sell
the assets, proceeds of which would be deposited into the fund to
which a cigarette or tobacco products tax liability is owed, to be
available upon appropriation by the Legislature and the General Fund,
as specified.
This bill would provide that the provisions of this bill are
severable.
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. Article 3.5 (commencing with Section 30133) is added to
Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code,
to read:
Article 3.5. License Suspension and Asset Seizure
30133. (a) A person who fails to pay a tax liability in violation
of this chapter shall be subject to suspension of any distributor's
license issued under this part and to seizure of any assets of the
person related to distribution of cigarettes or tobacco products.
(b) Within 30 days of a license suspension or seizure of assets
pursuant to subdivision (a), the board shall hold a hearing to
confirm or dismiss the violation of this chapter and the seizure or
forfeiture.
(c) If a willful failure to pay taxes in violation of this chapter
is confirmed pursuant to subdivision (b), the board may sell the
assets seized and may revoke the license of the person.
(d) Except as otherwise specified in this article, seizure and
sale of property pursuant to this article shall be in the manner
prescribed for the collection of a delinquent monthly tax.
(e) Proceeds from any asset seizure and sale pursuant to this
article shall be deposited as follows in the following priority:
(1) The amount of unpaid tax liability owed under this part by the
person under this chapter shall be deposited into the fund to which
it is owed. Notwithstanding any other provision of law, monies
deposited pursuant to this paragraph shall not be continuously
appropriated, and shall only be available upon appropriation by the
Legislature.
(2) Any remaining moneys shall be deposited into the General Fund.
30134. The board shall adopt regulations to implement this
article.
SEC. 2. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity does
not affect other provisions of applications that can be given effect
without the invalid provision or application.