BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 2770

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          Date of Hearing:  May 18, 2016 


                               Lorena Gonzalez, Chair

          2770 (Nazarian) - As Amended May 12, 2016

          |Policy       |Governmental Organization      |Vote:|12 - 8       |
          |Committee:   |                               |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No



          This bill changes the reporting date from January 1, 2019 to  
          July 1, 2018, for a report by the Board of Equalization (BOE)  
          regarding the adequacy of funding for the Cigarette and Tobacco  
          Products Licensing Act of 2003, and requires the BOE include  
          information regarding the excess fund balance in the Cigarette  
          and Tobacco Tax Compliance Fund. 

          FISCAL EFFECT:


                                                                    AB 2770

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          Minor costs to provide a required report six months sooner than  
          required under current law and to provide additional  


          1)Background. The California Cigarette and Tobacco Products  
            Licensing Act (Act) of 2003 (AB 71, Horton, Statutes of 2003),  
            created a comprehensive regulatory scheme governing the  
            distribution and sale of cigarettes and tobacco products in  
            this state, and requires the Board of Equalization (BOE) to  
            license manufacturers, importers, distributors, wholesalers,  
            and retailers of cigarettes and tobacco products.

          2)Purpose. This bill is a clean-up to ABX2-11, which increases  
            various tobacco fees, was recently signed into law.  This bill  
            requires the BOE submit a required report six months sooner,  
            and requires the report include information regarding a  
            recommendation by a March 16 State Auditor's report on the  
            excess fund balance.  

          Analysis Prepared by:Luke Reidenbach / APPR. / (916)  


                                                                    AB 2770

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