The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license.
This bill would instead require a retailer to pay a fee to cover the reasonable regulatory costs of the department, not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. The bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. The bill would repeal those reporting requirements on January 1, 2034.
Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines "package" for purposes of the penalty provision applicable to retailers.
This bill would add the same definition of "package" for purposes of the penalty provision applicable to wholesalers.
Chapter 462 of the Statutes of 2024 (SB 1230) , among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailer's products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited.
This bill would repeal the above-described provision added by SB 1230.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.

Statutes affected:
AB 573: 22973.3 BPC
02/12/25 - Introduced: 22973.3 BPC
03/28/25 - Amended Assembly: 22973.3 BPC, 22974.1 BPC, 22974.1 BPC, 22978.3 BPC, 22978.3 BPC