BILL ANALYSIS
AB 2733
Page 1
ASSEMBLY THIRD READING
AB 2733 (Ruskin)
As Introduced May 12, 2010
Majority vote
GOVERNMENTAL ORGANIZATION 17-0 JUDICIARY 9-0
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|Ayes:|Coto, Blakeslee, Chesbro, |Ayes:|Feuer, Tran, Brownley, |
| |Cook, | |Evans, Hagman, Jones, |
| |De Leon, Evans, Galgiani, | |Swanson, Monning, Nava |
| |Hernandez, Hill, Lieu, Ma, | | |
| |Mendoza, V. Manuel Perez, | | |
| |Portantino, Torres, | | |
| |Torrico, Tran | | |
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APPROPRIATIONS 16-0
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|Ayes:|Fuentes, Conway, Hill, | | |
| |Bradford, Charles | | |
| |Calderon, Coto, Davis, | | |
| |Hall, Harkey, Miller, | | |
| |Nielsen, Norby, Skinner, | | |
| |Solorio, Torlakson, | | |
| |Torrico | | |
| | | | |
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SUMMARY : Prohibits the transfer of title or possession of
cigarettes or tobacco products without consideration, exchange,
or barter if the cigarettes or tobacco products had been
purchased for resale under a license issued pursuant to the
California Cigarette and Tobacco Products Licensing Act (Act)
and the transfer occurs without a license or after receipt of a
notice of suspension or revocation of the license.
Specifically, this bill :
1)Prohibits certain displays of cigarettes or tobacco products.
2)Imposes prescribed notices to be posted when a license has
been posted when a license has been suspended or revoked by
the State Board of Equalization (BOE), and would make
AB 2733
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violation of these posting requirements subject to a civil
penalty of $1,000 for each offense.
EXISTING LAW :
1)Establishes the California Cigarette and Tobacco Products
Licensing Act and provides for the licensure by the BOE of
manufacturers, distributors, wholesalers, importers, and
retailers of cigarette or tobacco products that are engaged in
business in California.
2)Prohibits retailers, manufacturers, distributors, and
wholesalers from distributing or selling cigarettes and
tobacco products unless they are licensed.
3)Authorizes the BOE to suspend or revoke the license of any
manufacturer, distributor, wholesaler, importer, or retailer
of tobacco products that is in violation of the law.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, workload costs for the BOE would be minor and
absorbable within existing resources.
In addition, the Assembly Appropriations Committee estimates
potential minor non-reimbursable costs to counties for
prosecution and incarceration related to violations of the
bill's provisions, offset to some extent by fine revenues.
(This bill expands provisions of current law, the violation of
which is a misdemeanor.)
COMMENTS : This bill would prohibit a license holder from
gifting or displaying for sale cigarettes or tobacco products
during a period of suspension or after revocation of a license.
According to the BOE, the sponsor, this bill is intended to
provide the necessary clarification to licensees that gifting
cigarettes or tobacco products or the displaying of such
products in retail stock in a retail sales area is prohibited
during periods of license suspension or revocation, thus
avoiding further violations of the Act. These types of
violations of the Act are punishable, in part, by the seizure
and forfeiture of all cigarettes and tobacco products, which can
have a substantial financial effect on the licensee.
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Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531
FN: 0004444