BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1470|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 1470
Author: Wieckowski (D)
Introduced:2/19/16
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: Senate Rule 28.8
SUBJECT: Tobacco
SOURCE: Author
DIGEST: This bill revises a definitional requirement of
"tobacco store" to indicate that a retail business primarily
sells tobacco products and tobacco paraphernalia.
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)
§ 22962(4)(A))
a) Primarily sells tobacco products.
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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 revises a definitional requirement of "tobacco store"
to indicate that a retail business primarily sells tobacco
products and tobacco paraphernalia.
Background
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License for Retailers. Through AB 71 (Jerome Horton, Chapter
890, Statutes of 2003), the State of California enacted the
Cigarette and Tobacco Products Licensing Act, which established
a statewide licensing program under the Business and Professions
Code (BPC § 22970 et seq.). The Act imposed licensing
requirements on all retailers, wholesalers, and distributors of
cigarettes and tobacco products, and all manufacturers and
importers of cigarettes. These licensing requirements are in
addition to the permits and licenses that may be required
depending on the individual's business operations. The Act,
intended to decrease tax evasion on the sales of cigarettes and
tobacco products in California, also included provisions for new
recordkeeping requirements, inspection and seizure of any
untaxed cigarettes or tobacco products, and imposed civil and
criminal penalties for violations.
Every retailer who sells or will sell cigarettes or tobacco
products in California is required to obtain a retailer's
license from the BOE. An individual must obtain a license for
each retail location they own or operate. For example, if a
person operates several different stores, which each sell
cigarettes or tobacco products, they must obtain a separate
license for each store location. However, a person may submit a
single application for multiple licenses, and include $100 for
each location's license (BPC § 22972 (a)). The license is valid
for one year and must be renewed annually. There is no
additional charge to renew a license.
There are severe penalties of up to $5,000, or up to one year
imprisonment in the county jail, or both the fine and
imprisonment if an individual is caught selling cigarettes or
tobacco products without a license (BPC § 22972(a); 22980.1(h);
22981).
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified4/25/16)
None received
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OPPOSITION: (Verified4/25/16)
None received
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
4/27/16 15:57:33
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