BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1400|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: SB 1400
Author: Wieckowski (D)
Introduced:5/31/16
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 6-1, 4/11/16
AYES: Hill, Block, Hernandez, Jackson, Mendoza, Wieckowski
NOES: Berryhill
NO VOTE RECORDED: Bates, Galgiani
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
SUBJECT: Retail tobacco licenses
SOURCE: Author
DIGEST: This bill revises the definition of retail location
under the Cigarette and Tobacco Products Licensing Act to mirror
the definition of "tobacco store" under the Stop Tobacco Access
to Kids Enforcement Act starting in January 1, 2019.
ANALYSIS:
Existing law:
1)Defines a "tobacco store", under the Stop Tobacco Access to
Kids Enforcement Act, as a retail business that meets the
following requirements: (Business and Professions Code (BPC)
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§ 22962(4)(A))
a) Primarily sells tobacco products.
b) Generates more than 60 percent of its gross revenues
annually from the sale of tobacco products and tobacco
paraphernalia.
c) Does not permit any person under 18 years of age to be
present or enter the premises at any time, unless
accompanied by the person's parent or legal guardian, as
defined in Family Code § 6903.
d) Does not sell alcoholic beverages or food for
consumption on the premises.
2)Establishes the Cigarette and Tobacco Products Licensing Act,
which outlines the licensing requirements on all retailers,
wholesalers, and distributors of cigarettes and tobacco
products, and all manufacturers and importers of cigarettes.
(BPC § 22970 et seq.)
3)Requires the State Board of Equalization (BOE), under the
Cigarette and Tobacco Products Licensing Act, to administer a
statewide program to license cigarette and tobacco products
manufacturers, importers, distributors, wholesalers, and
retailers. (BPC § 22970.2)
4)Defines "retail location" as both any building from which
cigarettes or tobacco products are sold at retail and a
vending machine. (BPC § 22971(q))
5)Requires a retailer, for purposes of collecting a tobacco tax,
to obtain a separate license for each retail location that
sells cigarettes and tobacco products and pay a one-time fee
of $100. (BPC § 22973(7)(d))
6)Prohibits selling tobacco products without a valid license and
makes violations punishable as a misdemeanor. (BPC § 22980.2;
22981)
This bill recasts the definition of "retail location" as a
tobacco store that is a retail business that, among other
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things, generates more than 60% of its gross revenues annually
from the sale of tobacco products and tobacco paraphernalia
beginning in January 1, 2019.
Background
While California boasts the second-lowest smoking rate in the
nation, tobacco-related diseases still claim the lives of 40,000
Californians every year. The state has worked successfully to
discourage people from smoking; however, tobacco products are
easily available in a gas station or grocery store. Unlike
tobacco shops, there are no age restrictions on entering a gas
station or grocery store. Consequently, tobacco products sold
in these stores are visible and easily available to minors to
purchase. Tobacco advertising is also commonplace at many
retail locations.
A 2004 Stanford University study found that cigarettes are
marketed more heavily in stores where adolescents shop -
particularly the cigarette brands most popular with adolescent
smokers. The report underscores that, "Compared to other stores
in the same community, stores popular among adolescents
displayed more than three times as many cigarette marketing
materials outside, and contained almost three times more
marketing materials and twice as much shelf space for Marlboro,
Camel, and Newport. These three brands account for more than
80% of the cigarettes bought by US adolescents."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
The Senate Committee on Appropriations analysis dated May 27,
2016, reports one time increases to the tobacco retailer
licensing fees, reduced total excise tax and sales tax revenues
on tobacco products, and other unknown but signification health
care cost savings to public payers.
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SUPPORT: (Verified5/31/16)
American Academy of Pediatrics
American Lung Association
Common Sense Kids Action
County Health Executives Association of California
First5 California
Regional Asthma Management & Prevention
Santa Clara County Board of Supervisors
Tiburcio Vasquez Health Center
OPPOSITION: (Verified6/1/16)
American Petroleum and Convenience Store Association
California Black Chamber of Commerce
California Distributors Association
California Grocers Association
California Retailers Association
California Manufacturers & Technology Association
ARGUMENTS IN SUPPORT: The American Lung Association in
California asserts that, "By limiting the sale of tobacco
products to tobacco only stores, this bill limits the ability of
the tobacco industry to market tobacco to our kids. Studies
have shown that frequent exposure to tobacco retail displays has
been associated with increased smoking initiation among youth
and can create a negative impact on tobacco quit attempts."
ARGUMENTS IN OPPOSITION: The California Retailers Association
underscores that "While tobacco is a legal product in
California, our members would like to continue to responsibly
offer it for sale to age appropriate consumers. In fact, our
members have been licensed to sell tobacco products for many
years and have done so responsibly."
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
6/1/16 12:13:41
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