AB 2770, as introduced, Nazarian. Cigarette and tobacco product licensing: fees and funding.
The Cigarette and Tobacco Products Licensing Act of 2003 requires the State Board of Equalization to administer a statewide program to license manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. That act requires retailers of cigarettes and tobacco products to obtain a separate license for each retail location from the board, which is issued upon receipt of a completed application and payment of a one-time fee, unless specified conditions apply.
This bill would require a fee of $265 to be submitted with each license application, as described above. The bill would require, for calendar years beginning on and after January 1, 2017, a retailer to file an application for renewal of a retailer’s license accompanied with a fee of $265 per retail location, in the form and manner prescribed by the board.
The Cigarette and Tobacco Products Licensing Act of 2003 requires a wholesaler or distributor that commences business selling or distributing cigarettes or tobacco products, or that commences doing so at a new or different place of business in the state, to apply for a license accompanied by a required fee of $1,000 for each location. The act also requires a wholesaler or distributor to file an application for a license renewal accompanied by a required fee of $1,000 for each location where cigarettes and tobacco products are sold.
The bill would raise the fees described above to $1,200.
The bill would require the board to report to the Legislature no later than January 1, 2020, regarding the adequacy of funding for the Cigarette and Tobacco Licensing Act of 2003, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22973 of the Business and Professions
2Code is amended to read:
(a) An application for a license shall be filed on or
4before April 15, 2004, on a form prescribed by the board and shall
5include the following:
6(1) The name, address, and telephone number of the applicant.
7(2) The business name, address, and telephone number of each
8retail location. For applicants who control more than one retail
9location, an address for receipt of correspondence or notices from
10the board, such as a headquarters or corporate office of the retailer,
11shall also be included on the application and listed on the license.
12Citations issued to licensees shall be forwarded to all addressees
13on the license.
14(3) A statement by the applicant affirming that the applicant
15has not been convicted of a felony and has not violated and will
16not violate or cause or permit to be violated any of the provisions
17of this division or any rule of the board applicable to the applicant
18or pertaining to the manufacture, sale, or distribution of cigarettes
19or tobacco products. If the applicant is unable to affirm this
20statement, the application shall contain a statement by the applicant
21of the nature of any violation or the reasons that will prevent the
22applicant from complying with the requirements with respect to
23the statement.
24(4) If any other licenses or permits have been issued by the
25board or the Department of Alcoholic Beverage Control to the
26applicant, the license or permit number of those licenses or permits
27then in effect.
P3 1(5) A
statement by the applicant that the contents of the
2application are complete, true, and correct. Any person who signs
3a statement pursuant to this subdivision that asserts the truth of
4any material matter that he or she knows to be false is guilty of a
5misdemeanor punishable by imprisonment of up to one year in the
6county jail, or a fine of not more than one thousand dollars
7($1,000), or both the imprisonment and the fine.
8(6) The signature of the applicant.
9(7) Any other information the board may require.
10(b) The board may investigate to determine the truthfulness and
11completeness of the information provided in the application. The
12board may issue a license without further investigation to an
13applicant for a retail location if the applicant holds a valid license
14from the Department of Alcoholic Beverage Control for
that same
15location.
16(c) The board shall provide electronic means for applicants to
17download and submit applications.
18(d) begin delete(1)end deletebegin delete end deleteAbegin delete one-time licenseend delete
fee ofbegin delete one hundred dollars ($100)end delete
19begin insert two hundred sixty-five dollars ($265)end insert shall be submitted with each
20application. An applicant that owns or controls more than one retail
21location shall obtain a separate license for each retail location, but
22may submit a single application for those licenses withbegin delete a one-timeend delete
23begin insert an applicationend insert license fee ofbegin delete one hundred dollars ($100)end deletebegin insert end insertbegin inserttwo
24
hundred sixty-five dollars ($265)end insert per location.
25(2) The one-time fee required by this subdivision does not apply
26to an application for renewal of a license for a retail location for
27which the one-time license fee has already been paid. If a license
28is reinstated after its expiration, the retailer, as a condition
29precedent to its reinstatement, shall pay a reinstatement fee of one
30hundred dollars ($100).
31(e) For calendar years beginning on and after January 1, 2017,
32every retailer shall file an application for renewal of the license
33prescribed in Section 22972, accompanied with a fee of two
34hundred sixty-five dollars ($265) per
retail location, in the form
35and manner prescribed by the board.
36(f) (1) The board shall report to the Legislature no later than
37January 1, 2020, regarding the adequacy of funding for the
38Cigarette and Tobacco Products Licensing Act of 2003. The report
39shall include data and recommendations about whether the annual
P4 1licensing fee funding levels are set at an appropriate level to
2maintain an effective enforcement program.
3(2) The report required by paragraph (1) shall be submitted in
4compliance with Section 9795 of the Government Code.
Section 22977.1 of the Business and Professions Code
6 is amended to read:
(a) Every distributor and every wholesaler shall file
8an application, as prescribed in Section 22977, on or before April
915, 2004. Each application shall be accompanied by a fee of one
10thousand dollars ($1,000) for each location. The fee shall be for a
11calendar year and may not be prorated. Subject to meeting the
12requirements of this section and Section 22977.2, the board shall
13issue a license.
14(b) Every distributor and every wholesaler who commences
15business after the last day of May 2004, or who commences selling
16or distributing cigarettes or tobacco products at a new or different
17place of business in this state after the last day of May 2004, shall
18file with the board an application as prescribed in Section 22977
19at
least 30 days prior to commencing such business or commencing
20such sales or distributions; and all distributors and all wholesalers
21that fail to timely file an application for a license under subdivision
22(a) shall file with the board an application as prescribed in Section
2322977. Each application shall be accompanied by a fee of one
24thousandbegin insert two hundredend insert dollarsbegin delete ($1,000)end deletebegin insert ($1,200)end insert for each location.
25The fee shall be for a calendar year and may not be prorated.
26Subject to Section 22977.2, the board, within 30 days after receipt
27of an application and payment of the proper fee shall issue a
28license.
29(c) For calendar years beginning on and after January 1,
2005,
30begin insert and before January 1, 2017,end insert every distributor and every wholesaler
31shall file an application for renewal of the license prescribed in
32Section 22977, accompanied with a fee of one thousand dollars
33($1,000) for each location where cigarettes and tobacco products
34are sold, in the form and manner as prescribed by the board.begin insert For
35calendar years beginning on and after January 1, 2017, the fee
36accompanying an application for renewal of the license prescribed
37in Section 22977 shall be one thousand two hundred dollars
38($1,200) for each location where cigarettes and tobacco products
39are sold.end insert
P5 1(d) (1) The board shall report to the
Legislature no later than
2January 1, 2020, regarding the adequacy of funding for the
3Cigarette and Tobacco Products Licensing Act of 2003. The report
4shall include data and recommendations about whether the annual
5licensing fee funding levels are set at an appropriate level to
6maintain an effective enforcement program.
7(2) The report required by paragraph (1) shall be submitted in
8compliance with Section 9795 of the Government Code.
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