Bill Text: CA AB2770 | 2015-2016 | Regular Session | Chaptered


Bill Title: Cigarette and tobacco product licensing: fees and funding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-27 - Chaptered by Secretary of State - Chapter 699, Statutes of 2016. [AB2770 Detail]

Download: California-2015-AB2770-Chaptered.html
BILL NUMBER: AB 2770	CHAPTERED
	BILL TEXT

	CHAPTER  699
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2016
	PASSED THE SENATE  AUGUST 17, 2016
	PASSED THE ASSEMBLY  AUGUST 31, 2016
	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN SENATE  JUNE 16, 2016
	AMENDED IN ASSEMBLY  MAY 12, 2016

INTRODUCED BY   Assembly Member Nazarian

                        FEBRUARY 19, 2016

   An act to amend Sections 22972, 22973, 22973.3, and 22977.1 of,
and to add Sections 22990.5 and 22990.7 to, the Business and
Professions Code, relating to cigarette and tobacco product
licensing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2770, Nazarian. Cigarette and tobacco product licensing: fees
and funding.
   The Cigarette and Tobacco Products Licensing Act of 2003 requires
the State Board of Equalization to administer a statewide program to
license manufacturers, importers, distributors, wholesalers, and
retailers of cigarettes and tobacco products, and imposes various
licensing fees. That act requires a retailer to have a license to
engage in the sale of cigarette and tobacco products, and requires a
separate license for each retail location. Existing law imposes a fee
for each license and provides that the license is valid for a
12-month period. On and after January 1, 2017, existing law requires
a license to be renewed annually and imposes a renewal fee.
   This bill would require a retailer that adds an additional retail
location to renew the license for that location based on a 12-month
period beginning in the month the retailer obtained its license for
its first retail location. This bill would prohibit any license fee
or renewal fee from being prorated.
   The Cigarette and Tobacco Products Licensing Act of 2003 requires
the moneys collected pursuant to the act to be deposited in the
Cigarette and Tobacco Products Compliance Fund, which are available
for expenditure, upon appropriation by the Legislature, solely for
the purpose of implementing, enforcing, and administering the
licensing program under the act. The act requires the board to report
to the Legislature no later than January 1, 2019, regarding the
adequacy of funding for the licensing program .
   This bill would instead require the board to report to the
Legislature, Governor, and Department of Finance on or before January
1, 2019, and on and before January 1 annually thereafter.
   The Cigarette and Tobacco Products Tax Law imposes a tax on
distributors of cigarettes and tobacco products, and authorizes the
reimbursement of the State Board of Equalization for expenses
incurred in the administration and collection of the tax.
   This bill would prohibit, on or after July 1, 2019, the
appropriation of revenues derived from the taxes imposed upon the
distribution of cigarettes and tobacco products to the board for the
purpose of implementing, enforcing, or administering the California
Cigarette and Tobacco Products Licensing Act of 2003.


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, and shall be
renewed annually. A retailer that adds an additional retail location
shall renew the license for that location based on a 12-month period
beginning in the month the retailer obtained its license for its
first retail location.
  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) A fee of two hundred sixty-five dollars ($265) shall be
submitted with each application. 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 for those
licenses with an application license fee of two hundred sixty-five
dollars ($265) per location. The fee shall be for the period provided
in subdivision (d) of Section 22972 and shall not be prorated.
   (e) Beginning on and after January 1, 2017, every retailer shall
file an application for renewal of the license prescribed in Section
22972, accompanied with a fee of two hundred sixty-five dollars
($265) per retail location, in the form and manner prescribed by the
board.
  SEC. 3.  Section 22973.3 of the Business and Professions Code is
amended to read:
   22973.3.  (a) Notwithstanding any other law, an application for a
license for the sale of a tobacco product, as defined in subdivision
(d) of Section 22950.5, that is not subject to a tax imposed by the
Cigarette and Tobacco Products Tax Law pursuant to Part 13
(commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code shall be filed 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) A fee of two hundred sixty-five dollars ($265) shall be
submitted with each application. 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 for those
licenses with an application license fee of two hundred sixty-five
dollars ($265) per location. The fee shall be for the period provided
in subdivision (d) of Section 22972 and shall not be prorated.
   (e) Every retailer shall file an application for renewal of its
license, accompanied with a fee of two hundred sixty-five dollars
($265) per retail location in the form and manner prescribed by the
board.
   (f) (1) The board shall report back to the Legislature no later
than January 1, 2019, regarding the adequacy of funding for the
Cigarette and Tobacco Products Licensing Act of 2003 with regard to
tobacco products for which a license is required by this section. The
report shall include data and recommendations about whether the
annual licensing fee funding levels are set at an appropriate level
to maintain an effective enforcement program.
   (2) The report required by paragraph (1) shall be submitted in
compliance with Section 9795 of the Government Code.
   (g) (1) This section shall apply to a retailer who sells a tobacco
product, as defined in subdivision (d) of Section 22950.5, that is
not subject to a tax imposed by the Cigarette and Tobacco Products
Tax Law pursuant to Part 13 (commencing with Section 30001) of
Division 2 of the Revenue and Taxation Code, and who does not already
possess a valid license to sell cigarettes or tobacco products
issued pursuant to Section 22972.
   (2) A retailer that possesses a valid license to sell cigarettes
and tobacco products issued pursuant to Section 22972 may also sell
under that license a tobacco product, as defined in subdivision (d)
of Section 22950.5, that is not subject to a tax imposed by the
Cigarette and Tobacco Products Tax Law pursuant to Part 13
(commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code.
   (h) This section shall become operative January 1, 2017.
  SEC. 4.  Section 22977.1 of the Business and Professions Code is
amended to read:
   22977.1.  (a) Every distributor and every wholesaler shall file an
application, as prescribed in Section 22977, on or before April 15,
2004. Each application shall be accompanied by a fee of one thousand
dollars ($1,000) for each location. The fee shall be for a calendar
year and may not be prorated. Subject to meeting the requirements of
this section and Section 22977.2, the board shall issue a license.
   (b) Every distributor and every wholesaler who commences business
after the last day of May 2004, or who commences selling or
distributing cigarettes or tobacco products at a new or different
place of business in this state after the last day of May 2004, shall
file with the board an application as prescribed in Section 22977 at
least 30 days prior to commencing such business or commencing such
sales or distributions; and all distributors and all wholesalers that
fail to timely file an application for a license under subdivision
(a) shall file with the board an application as prescribed in Section
22977. Each application shall be accompanied by a fee of one
thousand two hundred dollars ($1,200) for each location. The fee
shall be for a calendar year and may not be prorated. Subject to
Section 22977.2, the board, within 30 days after receipt of an
application and payment of the proper fee shall issue a license.
   (c) For calendar years beginning on and after January 1, 2005, and
before January 1, 2017, every distributor and every wholesaler shall
file an application for renewal of the license prescribed in Section
22977, accompanied with a fee of one thousand dollars ($1,000) for
each location where cigarettes and tobacco products are sold, in the
form and manner as prescribed by the board. For calendar years
beginning on and after January 1, 2017, the fee accompanying an
application for renewal of the license prescribed in Section 22977
shall be one thousand two hundred dollars ($1,200) for each location
where cigarettes and tobacco products are sold.
  SEC. 5.  Section 22990.5 is added to the Business and Professions
Code, to read:
   22990.5.  Notwithstanding Sections 30124 and 30131.3 of the
Revenue and Taxation Code or any other law, on or after July 1, 2019,
no revenues derived from the taxes imposed upon the distribution of
cigarettes and tobacco products by Article 1 (commencing with Section
30101), Article 2 (commencing with Sections 30121), and Article 3
(commencing with Section 30131) of Chapter 2 of Part 13 of Division 2
of the Revenue and Taxation Code shall be appropriated to the board
for the purpose of implementing, enforcing, or administering the
California Cigarette and Tobacco Products Licensing Act of 2003.
  SEC. 6.  Section 22990.7 is added to the Business and Professions
Code, to read:
   22990.7.  (a) The board shall report to the Legislature, Governor,
and Department of Finance on or before January 1, 2019, and on and
before January 1 annually thereafter, regarding the adequacy of
funding for the Cigarette and Tobacco Products Licensing Act of 2003.
The report shall include data and recommendations about whether the
annual licensing fee funding levels are set at an appropriate level
to maintain an effective enforcement program.
   (b) The report to the Legislature required by subdivision (a)
shall be submitted in compliance with Section 9795 of the Government
Code.                     
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