BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 602|
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THIRD READING
Bill No: SB 602
Author: Padilla (D), et al
Amended: 5/28/09
Vote: 21
SENATE HEALTH COMMITTEE : 7-3, 4/15/09
AYES: Alquist, Cedillo, DeSaulnier, Leno, Negrete McLeod,
Pavley, Wolk
NOES: Strickland, Aanestad, Cox
NO VOTE RECORDED: Maldonado
SENATE REVENUE & TAXATION COMMITTEE : 5-3, 4/22/09
AYES: Wolk, Alquist, Florez, Padilla, Wiggins
NOES: Walters, Ashburn, Runner
SENATE APPROPRIATIONS COMMITTEE : 7-5, 5/28/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
NO VOTE RECORDED: Wolk
SUBJECT : Retail tobacco sales: violations
SOURCE : Author
DIGEST : This bill repeals the current restrictions that
limits the Board of Equalizations (BOE) enforcement actions
against retail tobacco license holders, requires
enforcement agencies to notify BOE of retailers' violations
of underage sales laws, and strengthens penalties on
CONTINUED
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retailers convicted of furnishing products to people under
the age of 18.
ANALYSIS : Existing law, the Stop Tobacco Access to Kids
Enforcement Act (STAKE Act), establishes various
requirements for retailers relating to tobacco sales to
minors. Existing law also makes it a misdemeanor for a
retailer to knowingly or under circumstances in which it
has knowledge, or should otherwise have grounds for
knowledge, sell, give, or in any way furnish a minor with
tobacco products or paraphernalia. Under existing law,
violation of the STAKE Act or the misdemeanor provision
result in BOE action, on a set schedule, relating to the
licensure of the retailer when the youth purchase survey
finds that 13 percent or more of youth are able to purchase
cigarettes, and makes BOE's authority inoperative when a
youth purchase survey shows less than 13 percent of youth
were able to purchase cigarettes.
This bill allows BOE to take action relating to the
licensure of retailers who have violated the STAKE Act and
misdemeanor provisions at any time, would require the
enforcing agency to notify the board of a conviction of a
violation in a timely manner, and requires BOE to take
appropriate action upon that notification.
This bill deletes provisions of law that prohibit BOE from
issuing a new cigarette and tobacco products license for a
retail location in an "area of overconcentration," and
specifies penalty amounts for violations of the STAKE Act
($750 for a first conviction and $1,500 for a second
conviction.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the most recent Senate Appropriations
Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
BOE: Stake Act Unknown administrative costs,
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likelySpecial*/
in the range of $250-$500
annuallyGeneral
Department of Public $89 $178
$178Special*/
Health: tracking/reporting General
of STAKE Act violations
Law enforcement Unknown reimbursable mandate
costs,General
reporting (local mandate) likely in the range of
$300-$500 annually
STAKE Act: penalties Unknown penalty revenue
gains, Special*
potentially in the range of
$1,000-$2,000
annually
* Cigarette and Tobacco Products Compliance Fund; also
General Fund, other tobacco tax special funds
SUPPORT : (Verified 5/29/09)
American Cancer Society
American Heart Association
Breathe California
California Dental Association
California Medical Association
Magna Systems Incorporated
OPPOSITION : (Verified 5/29/09) (prior version of bill)
California Grocers Association
California Independent Grocers Association
CTW:mw 5/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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