BILL NUMBER: SB 603 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 1, 2009
AMENDED IN SENATE MAY 18, 2009
AMENDED IN SENATE APRIL 28, 2009
AMENDED IN SENATE APRIL 15, 2009
INTRODUCED BY Senator Padilla
(Principal coauthor: Assembly Member Beall)
(Coauthors: Senators DeSaulnier, Leno, Oropeza, and Romero)
FEBRUARY 27, 2009
An act to amend Sections 22972 and 22973 of, and to add
Section 22973.3 Sections 22973.3 and 22973.4 to,
the Business and Professions Code, relating to retail tobacco sales.
LEGISLATIVE COUNSEL'S DIGEST
SB 603, as amended, Padilla. Retail tobacco sales: licenses.
The California Cigarette and Tobacco Products Licensing Act of
2003 requires a retailer to obtain a license from the State Board of
Equalization to engage in the sale of cigarette and tobacco products
in this state, and requires a retailer to
obtain a separate license for each retail location, requires
retailer licensees to pay a one-time license fee of $100, no renewal
fee, and a reinstatement fee of $100 if the license is renewed after
lapse, and authorizes the board to suspend or revoke the license of
any retailer of tobacco products that is in violation of the act.
Existing law requires all moneys collected pursuant to the act to
be deposited in the Cigarette and Tobacco Products Compliance Fund,
which is available for appropriation by the Legislature solely for
the purpose of implementing, enforcing, and administering the
California Cigarette and Tobacco Products Licensing Act of 2003.
This bill would specify that a new license may not be issued to a
retailer for a retail location that is located within 600 feet of a
school, except as specified.
This bill would prohibit the board from issuing a new license to a
retailer for a retail location in an area of overconcentration, as
defined. The bill would authorize the board to issue a new license if
the local governing body of the area in which the applicant's
premises are located, or its designated subordinate officer or body,
determines that public convenience or necessity would be served by
the issuance. The bill would require that determination to be made
within 90 days of notification of a completed application, as
specified, except that if the local governing body, or its designated
subordinate officer or body, did not make a determination within 90
days the license would be deemed denied. The board would be
authorized to issue a license if the determination is made within the
90-day period and the applicant shows that public convenience or
necessity would be served by the issuance.
This bill would limit the number of new retail licenses available,
as specified. The
The bill would set the renewal fee at $100. This bill
would allow, under specified circumstances, a retailer to transfer an
existing license to another person for continued use at the same
location upon the sale or transfer of the business holding the
license, if the business is in an area where the number of
current licenses exceeds the specified limit of
overconcentration .
This bill would require the Department of Alcoholic Beverage
Control and the State Department of Public Health to provide
specified information to the board upon request.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22972 of the Business and Professions Code is
amended to read:
22972. (a) Commencing June 30, 2004, a retailer shall have in
place and maintain a license to engage in the sale of cigarettes or
tobacco products. A retailer that owns or controls more than one
retail location shall obtain a separate license for each retail
location, but may submit a single application for those licenses.
(b) The retailer shall conspicuously display the license at each
retail location in a manner visible to the public.
(c) A license is not assignable or transferable. A person who
obtains a license as a retailer who ceases to do business as
specified in the license, or who never commenced business, or whose
license is suspended or revoked, shall immediately surrender the
license to the board.
(d) A license shall be valid for a 12-month period upon issuance
of the licence pursuant to Section 22973.1, unless surrendered,
suspended, or revoked prior to the end of the 12-month period, and
may be renewed annually upon payment of the fee prescribed in
subdivision (d) of Section 22973.
(e) Any subsequent license issued to a retailer that owns or
controls more than one retail location shall be valid for a partial
year period from the start date of the new license to the end of the
12-month period of the initial license. After a partial year period,
all licenses held by a retailer that owns or controls more than one
retail local shall be valid for the same 12-month period as a
retailer's initial license.
SEC. 2. Section 22973 of the Business and Professions Code is
amended to read:
22973. (a) An application for a license shall be filed on or
before April 15, 2004, on a form prescribed by the board and shall
include the following:
(1) The name, address, and telephone number of the applicant.
(2) The business name, address, and telephone number of each
retail location. For applicants who control more than one retail
location, an address for receipt of correspondence or notices from
the board, such as a headquarters or corporate office of the
retailer, shall also be included on the application and listed on the
license. Citations issued to licensees shall be forwarded to all
addressees on the license.
(3) A statement by the applicant affirming that the applicant has
not been convicted of a felony and has not violated and will not
violate or cause or permit to be violated any of the provisions of
this division or any rule of the board applicable to the applicant or
pertaining to the manufacture, sale, or distribution of cigarettes
or tobacco products. If the applicant is unable to affirm this
statement, the application shall contain a statement by the applicant
of the nature of any violation or the reasons that will prevent the
applicant from complying with the requirements with respect to the
statement.
(4) If any other licenses or permits have been issued by the board
or the Department of Alcoholic Beverage Control to the applicant,
the license or permit number of those licenses or permits then in
effect.
(5) A statement by the applicant that the contents of the
application are complete, true, and correct. Any person who signs a
statement pursuant to this subdivision that asserts the truth of any
material matter that he or she knows to be false is guilty of a
misdemeanor punishable by imprisonment of up to one year in the
county jail, or a fine of not more than one thousand dollars
($1,000), or both the imprisonment and the fine.
(6) The signature of the applicant.
(7) Any other information the board may require.
(b) The board may investigate to determine the truthfulness and
completeness of the information provided in the application. The
board may issue a license without further investigation to an
applicant for a retail location if the applicant holds a valid
license from the Department of Alcoholic Beverage Control for that
same location.
(c) The board shall provide electronic means for applicants to
download and submit applications.
(d) (1) A license fee of one hundred dollars ($100) shall be
submitted with each application and application for renewal. An
applicant that owns or controls more than one retail location shall
obtain a separate license for each retail location, but may submit a
single application or application for renewal for those licenses with
a license fee of one hundred dollars ($100) per location. The fee
shall not be prorated.
(2) If a license is reinstated after its expiration, the retailer,
as a condition precedent to its reinstatement, shall also pay a
reinstatement fee of one hundred dollars ($100).
(e) An application for renewal shall be in the form as prescribed
by the board, which may include, but not be limited to, the name,
address, and telephone number of the applicant, business name,
address, and telephone number of each retail location, and any other
information as the board deems necessary for the proper
administration of this division.
SEC. 3. Section 22973.3 is added to the Business and Professions
Code, to read:
22973.3. (a) The number of licenses issued shall be limited to
one for each 2,500 persons, or fraction thereof, over 18 years of age
in the county in which the retail facilities are situated. No new
license shall be issued for a county in which the number of current
licenses is more than one for every 2,500 persons, or fraction
thereof, 18 years of age or older. Applications shall be granted, if
they meet the requirements of this chapter, in the order in which
they are received. The subdivision shall not preclude the renewal of
any existing license or the transfer of any existing license.
22973.3. (a) The board shall not issue a new
license to a retailer for a retail location in an area of
overconcentration.
(b) Notwithstanding subdivision (a), the board may issue a new
license if the local governing body of the area in which the
applicant's premises are located, or its designated subordinate
officer or body, determines within 90 days of notification of a
completed application that public convenience or necessity would be
served by the issuance. The 90-day period shall commence upon receipt
by the local governing body of (1) notification by the board of an
application for licensure, or (2) a completed application according
to local requirements, if any, whichever is later.
If the local governing body, or its designated subordinate officer
or body, does not make a determination within the 90-day period, the
license shall be deemed denied.
(c) For purposes of this section:
(1) "Area of overconcentration" means an area where the ratio of
retail licenses to population in the census tract is greater than the
ratio of retail licenses to population in the county overall.
(2) "Population in census tract" means the population as
determined by the most recent United States decennial or special
census. The population determination shall not operate to prevent an
applicant from establishing that an increase of resident population
has occurred within the census tract.
(3) "Population in the county" means the annual population
estimate for California counties published by the Population Research
Unit of the Department of Finance.
(d) Notwithstanding subdivision (c) of Section 22972, this section
shall not apply to the renewal or transfer of a retail license.
(b)
(e) (1) Notwithstanding any other law, subject to
approval by the board, in an area where the number of
current licenses exceeds the amount allowed by subdivision (a)
of overconcentration , a retailer may transfer
an existing license to another person only for the continued use at
the same location upon the sale or transfer of the business holding
the license, only to a person who otherwise meets the requirements
for the issuance of a new license, and only after first providing 30
days notice to the board together with an application for transfer,
all transfer documents, and evidence that the transferee would meet
the requirements for the issuance of a new license.
(2) The application for transfer shall be in the form as
prescribed by the board and contain any information that the board
may require. A transfer fee of ____ dollars ($____)
one hundred dollars ($100) shall be submitted
with each application.
(c) (1) Notwithstanding subdivision (a), the State Board of
Equalization may issue a new license if the local governing body of
the area in which the applicant's premises are located, or its
designated subordinate officer or body, determines within 90 days of
notification of a completed application that public convenience or
necessity would be served by the issuance. The 90-day period shall
commence upon receipt by the local governing body of either of the
following:
(A) Notification by the State Board of Equalization of an
application for a license.
(B) A completed application according to local requirements, if
any, whichever is later.
(2) If the local governing body, or its designated subordinate
officer or body, does not make a determination within the 90-day
period, the license shall be deemed denied.
(d)
(f) This section shall not preempt a local jurisdiction
from adopting an ordinance that is more restrictive than this
section with regard to retailers.
(e) The population in a county shall be determined by the annual
population estimate for California counties published by the
Population Research Unit of the Department of Finance.
(f)
( g ) In an area where the number
of current licenses exceeds the number allowed by subdivision (a)
of overconcentration , the board may reinstate
an expired license within six months after its expiration.
(g)
(h) The Department of Alcoholic Beverage Control shall,
upon request, provide to the board any licensure information,
including, but not limited to, applications, license issuance,
license transfers, license denials, or any other information
necessary to administer this chapter. The State Department of Public
Health shall, upon request, provide to the board any information,
including, but not limited to, statewide information on the annual
Youth Tobacco Purchase Survey, STAKE Act compliance checks,
California retailers and youth tobacco control laws, or any other
information necessary to administer this chapter.
SEC. 4. Section 22973.4 is added to the
Business and Professions Code , to read:
22973.4. (a) The board shall not issue a new retail license to a
retailer for a retail location that is located within 600 feet of a
public or private elementary or secondary school.
(b) (1) Notwithstanding subdivision (a), the board may issue a new
retail license to a retailer for a retail location that is located
within 600 feet of a public or private elementary school if the local
governing body of the area in which the applicant's premises are
located, or its designated subordinate officer or body, determines
within 90 days of notification of a completed application that public
convenience or necessity would be served by the issuance. The 90-day
period shall commence upon receipt by the local governing body of
either of the following:
(A) Notification by the board of an application for licensure.
(B) A completed application according to local requirements, if
any, whichever is later.
(2) If the local governing body, or its designated subordinate
officer or body, does not make a determination within the 90-day
period, the license shall be deemed denied.
(c) This section shall not preempt a local jurisdiction from
adopting an ordinance that is more restrictive than this section with
regard to retailers or proximity to a school.
(d) The Department of Alcoholic Beverage Control, shall, upon
request, provide to the board any licensure information, including,
but not limited to, applications, license issuance, license
transfers, license denials, or any other information necessary to
administer this chapter. The State Department of Public Health,
shall, upon request, provide to the board any information, including,
but not limited to, statewide information on the annual Youth
Tobacco Purchase Survey, Stop Tobacco Access to Kids Enforcement Act
(STAKE ACT) (Division 8.5 (commencing with Section 229550) compliance
checks, California retailers and youth tobacco control laws, or any
other information necessary to administer this chapter.