Bill Text: CA SB1400 | 2015-2016 | Regular Session | Amended

California Senate Bill 1400 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Tobacco.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1400 Detail]

Download: California-2015-SB1400-Amended.html

BILL NUMBER: SB 1400	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 31, 2016

INTRODUCED BY   Senator Wieckowski

                        FEBRUARY 19, 2016

   An act to  amend   amend, repeal, and add
 Section 22971 of the Business and Professions Code, relating to
cigarette and tobacco products.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1400, as amended, Wieckowski. Retail tobacco licenses.
   Existing law, the Cigarette and Tobacco Products Licensing Act of
 2003   2003,  requires a retailer to
obtain a license from the State Board of Equalization to engage in
the sale of  cigarette   cigarettes  and
tobacco products in this state and defines a retailer as a person who
engages in this state in the sale of cigarettes or tobacco products
directly to the public from a retail location. The act defines a
"retail location" as both any building from which cigarettes or
tobacco products are sold at retail and a vending machine.
   This bill would  , beginning January 1, 2019,  revise the
definition of a "retail location" to mean a tobacco store that is a
retail business that, among other things, generates more than 60% of
its gross revenues annually from the sale of tobacco products and
tobacco paraphernalia.
   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 22971 of the Business and Professions Code is
amended to read:
   22971.  For purposes of this division, the following terms shall
have the following meanings:
   (a) "Board" means the State Board of Equalization.
   (b) "Brand family" has the same meaning as that term is defined in
paragraph (2) of subdivision (a) of Section 30165.1 of the Revenue
and Taxation Code.
   (c) "Cigarette" means a cigarette as defined in Section 30003 of
the Revenue and Taxation Code.
   (d) (1) "Control" or "controlling" means possession, direct or
indirect, of the power:
   (A) To vote 25 percent or more of any class of the voting
securities issued by a person.
   (B) To direct or cause the direction of the management and
policies of a person, whether through the ownership of voting
securities, by contract, other than a commercial contract for goods
or nonmanagement services, or as otherwise provided; however, no
individual shall be deemed to control a person solely on account of
being a director, officer, or employee of that person.
   (2) For purposes of subparagraph (B) of paragraph (1), a person
who, directly or indirectly, owns, controls, holds, with the power to
vote, or holds proxies representing 10 percent or more of the then
outstanding voting securities issued by another person, is presumed
to control that other person.
   (3) For purposes of this division, the board may determine whether
a person in fact controls another person.
   (e) "Display for sale" means the placement of cigarettes or
tobacco products in a vending machine or in retail stock for the
purpose of selling or gifting the cigarettes or tobacco products. For
purposes of this definition, the clear and easily visible display of
cigarettes or tobacco products shall create a rebuttable presumption
that either were displayed for sale.
   (f) "Distributor" means a distributor as defined in Section 30011
of the Revenue and Taxation Code.
   (g) "Gifting" means any transfer of title or possession without
consideration, exchange, or barter, in any manner or by any means, of
cigarettes or tobacco products that have been purchased for resale
under a license issued pursuant to this division if the transfer
occurs while the license is suspended or after the effective date of
its revocation.
   (h) "Importer" means an importer as defined in Section 30019 of
the Revenue and Taxation Code.
   (i) "Law enforcement agency" means a sheriff, a police department,
or a city, county, or city and county agency or department
designated by the governing body of that agency to enforce this
chapter or to enforce local smoking and tobacco ordinances and
regulations.
   (j) "License" means a license issued by the board pursuant to this
division.
   (k) "Licensee" means any person holding a license issued by the
board pursuant to this division.
   (l) "Manufacturer" means a manufacturer of cigarettes or tobacco
products sold in this state.
   (m) "Notice" or "notification" means, unless as otherwise
provided, the written notice or notification provided to a licensee
by the board by either actual delivery to the licensee or by
first-class mail addressed to the licensee at the address on the
license.
   (n) "Package of cigarettes" means a package as defined in Section
30015 of the Revenue and Taxation Code.
   (o) "Person" means a person as defined in Section 30010 of the
Revenue and Taxation Code.
   (p) "Retailer" means a person who engages in this state in the
sale of cigarettes or tobacco products directly to the public from a
retail location. Retailer includes a person who operates vending
machines from which cigarettes or tobacco products are sold in this
state. 
   (q) "Retail location" means a tobacco store as defined in Section
22962.  
   (q) "Retail location" means both of the following:  
   (1) Any building from which cigarettes or tobacco products are
sold at retail.  
   (2) A vending machine. 
   (r) "Sale" or "sold" means a sale as defined in Section 30006 of
the Revenue and Taxation Code.
   (s) "Tobacco products" means tobacco products as defined in
subdivision (b) of Section 30121 and subdivision (b) of Section
30131.1 of the Revenue and Taxation Code.
   (t) "Unstamped package of cigarettes" means a package of
cigarettes that does not bear a tax stamp as required under Part 13
(commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code, including a package of cigarettes that bears a tax
stamp of another state or taxing jurisdiction, a package of
cigarettes that bears a counterfeit tax stamp, or a stamped or
unstamped package of cigarettes that is marked "Not for sale in the
United States."
   (u) "Wholesaler" means a wholesaler as defined in Section 30016 of
the Revenue and Taxation Code. 
   (v) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date. 
   SEC. 2.    Section 22971 is added to the  
Business and Professions Code   , to read:  
   22971.  (a) For purposes of this division, the following terms
shall have the following meanings:
   (1) "Board" means the State Board of Equalization.
   (2) "Brand family" has the same meaning as that term is defined in
paragraph (2) of subdivision (a) of Section 30165.1 of the Revenue
and Taxation Code.
   (3) "Cigarette" means a cigarette as defined in Section 30003 of
the Revenue and Taxation Code.
   (4) (A) "Control" or "controlling" means possession, direct or
indirect, of the power:
   (i) To vote 25 percent or more of any class of the voting
securities issued by a person.
   (ii) To direct or cause the direction of the management and
policies of a person, whether through the ownership of voting
securities, by contract, other than a commercial contract for goods
or nonmanagement services, or as otherwise provided; however, no
individual shall be deemed to control a person solely on account of
being a director, officer, or employee of that person.
   (B) For purposes of clause (ii) of subparagraph (A), a person who,
directly or indirectly, owns, controls, holds, with the power to
vote, or holds proxies representing 10 percent or more of the then
outstanding voting securities issued by another person, is presumed
to control that other person.
   (C) For purposes of this division, the board may determine whether
a person in fact controls another person.
   (5) "Display for sale" means the placement of cigarettes or
tobacco products in a vending machine or in retail stock for the
purpose of selling or gifting the cigarettes or tobacco products. For
purposes of this definition, the clear and easily visible display of
cigarettes or tobacco products shall create a rebuttable presumption
that either were displayed for sale.
   (6) "Distributor" means a distributor as defined in Section 30011
of the Revenue and Taxation Code.
   (7) "Gifting" means any transfer of title or possession without
consideration, exchange, or barter, in any manner or by any means, of
cigarettes or tobacco products that have been purchased for resale
under a license issued pursuant to this division if the transfer
occurs while the license is suspended or after the effective date of
its revocation.
   (8) "Importer" means an importer as defined in Section 30019 of
the Revenue and Taxation Code.
   (9) "Law enforcement agency" means a sheriff, a police department,
or a city, county, or city and county agency or department
designated by the governing body of that agency to enforce this
chapter or to enforce local smoking and tobacco ordinances and
regulations.
   (10) "License" means a license issued by the board pursuant to
this division.
   (11) "Licensee" means any person holding a license issued by the
board pursuant to this division.
   (12) "Manufacturer" means a manufacturer of cigarettes or tobacco
products sold in this state.
   (13) "Notice" or "notification" means, unless as otherwise
provided, the written notice or notification provided to a licensee
by the board by either actual delivery to the licensee or by
first-class mail addressed to the licensee at the address on the
license.
   (14) "Package of cigarettes" means a package as defined in Section
30015 of the Revenue and Taxation Code.
   (15) "Person" means a person as defined in Section 30010 of the
Revenue and Taxation Code.
   (16) "Retailer" means a person who engages in this state in the
sale of cigarettes or tobacco products directly to the public from a
retail location. Retailer includes a person who operates vending
machines from which cigarettes or tobacco products are sold in this
state.
   (17) "Retail location" means a tobacco store as defined in Section
22962.
   (18) "Sale" or "sold" means a sale as defined in Section 30006 of
the Revenue and Taxation Code.
   (19) "Tobacco products" means tobacco products as defined in
subdivision (b) of Section 30121 and subdivision (b) of Section
30131.1 of the Revenue and Taxation Code.
   (20) "Unstamped package of cigarettes" means a package of
cigarettes that does not bear a tax stamp as required under Part 13
(commencing with Section 30001) of Division 2 of the Revenue and
Taxation Code, including a package of cigarettes that bears a tax
stamp of another state or taxing jurisdiction, a package of
cigarettes that bears a counterfeit tax stamp, or a stamped or
unstamped package of cigarettes that is marked "Not for sale in the
United States."
   (21) "Wholesaler" means a wholesaler as defined in Section 30016
of the Revenue and Taxation Code.
   (b) This section shall become operative on January 1, 2019.