Bill Text: CA SB331 | 2011-2012 | Regular Session | Amended
Bill Title: Retail tobacco licenses.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 62(a). [SB331 Detail]
Download: California-2011-SB331-Amended.html
BILL NUMBER: SB 331 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 13, 2012
AMENDED IN SENATE JANUARY 4, 2012
AMENDED IN SENATE APRIL 27, 2011
INTRODUCED BY Senator Padilla
(Principal coauthor: Assembly Member Hill)
FEBRUARY 15, 2011
An act to amend Sections 22973 and 22973.1 of, and to add Section
22960.5 to, the Business and Professions Code, relating to cigarette
and tobacco products.
LEGISLATIVE COUNSEL'S DIGEST
SB 331, as amended, Padilla. Retail tobacco licenses.
The 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 specifies instances when the board is not required to
issue a license. Existing law requires an application for a license
to be filed on or before April 15, 2004. Existing law makes it a
misdemeanor to sign the application if the signer knows the
application has false statements.
Existing law, the Stop Tobacco Access to Kids Enforcement Act, or
STAKE Act, establishes various requirements for retailers relating to
tobacco sales to minors.
This bill would make the location of a new
retail location within 600 feet of a public or private elementary or
secondary school on or after January 1, 2013, a violation
of the STAKE Act, and would prohibit the issuance of a new
license for a retail location that is located within 600
feet of a public or private elementary or secondary school
on or after January 1, 2013 . This bill would
require the application to include a statement regarding the
location. This bill would authorize
require the board to revoke cancel
licenses , for retail locations issued
on or after January 1, 2013, if these licenses were wrongfully
issued, and as specified, would
also delete the April 15, 2004, application deadline ,
and would make conforming changes . By changing the
definition of a crime, this bill would impose a state
-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The
Legislature hereby finds and declares all of the following:
(a) In 2007, 20 percent of high school
students in the United States were current cigarette
smokers--approximately 19 percent of females and 21 percent of males.
Among racial and ethnic subgroups, approximately 23 percent of
white, 17 percent of Hispanic, and 12 percent of African American
high school students were current cigarette smokers in 2007.
(b) In 2006, approximately 6 percent of middle school students in
this country were current cigarette smokers, with estimates of 6
percent for females and 6 percent for males. Among racial and ethnic
subgroups, approximately 7 percent of white, 7 percent of Hispanic, 6
percent of African American, and 3 percent of Asian American middle
school students were current cigarette smokers in 2006.
(c) Each day in the United States, approximately 3,600 young
people between 12 and 17 years of age initiate cigarette smoking, and
an estimated 1,100 young people become daily cigarette smokers.
(d) Lower income areas are more likely to have higher rates of
underage tobacco sales and to be a hot spot for these sales.
(e) In more densely populated areas, there is a positive
relationship between underage tobacco sales and the number of
schools.
(f) In general, where there are more tobacco outlets, there will
also be more schools. Densely populated ZIP Code areas are shown to
have more schools, more tobacco outlets, and more underage tobacco
sales.
(g) When examining school proximity and underage sales, gas
stations, discount stores, supermarkets, and pharmacies are
positively related to increased underage sales, while gas stations
with convenient convenience stores are
negatively associated.
(h) Section 22971.3 of the Business and Professions Code provides
that nothing within Division 8.6 (commencing with Section 22970) of
the Business and Professions Code would preempt or supersede
preempts or supersedes any local tobacco
control laws other than those related to the collection of state
taxes, and that local licensing laws may provide for the suspension
or revocation of the local license for any violation of a state
tobacco control law.
SEC. 2. Section 22960.5 is added to the Business and Professions
Code, to read:
22960.5. (a) It is the intent of the Legislature for this section
to set forth minimum state restrictions on the sale of cigarette and
tobacco products from a retail location and not to preempt or
otherwise prohibit the adoption of a local standard that further
restricts access to, or reduces the availability of, cigarette and
tobacco products from a retail location. A local standard that
imposes additional restrictions shall control in the event of an
inconsistency between this section and a local standard.
(b) No retail location established on or after January 1,
2013, shall be located within 600 feet of a public or private
elementary or secondary school.
(c) The department shall direct the State Board of Equalization to
revoke cancel a license issued
pursuant to Chapter 2 (commencing with Section 22972) of Division 8.6
for any retail location in violation of subdivision (a)
(b) , and the board shall revoke
cancel this license pursuant to
subdivision (b) of Section 22973.1 after providing
notice of the cancellation to the licensee. Upon request, the
department shall provide the board with all relevant information
regarding the licensee and the violation to enable the
board to cancel the license .
(d) For purposes of this section the following definitions apply:
(1) "Retail location" has the meaning set forth in subdivision (q)
of Section 22971.
(2) "600 feet" means the distance, measured in a straight line,
from the closest edge of a retail location to the closest edge of a
public or private elementary or secondary school, or the closest edge
of the parking lot of a school, whichever distance is shorter.
(e) This section does not apply to a retail location that
has already been was licensed pursuant to
Chapter 2 (commencing with Section 22972) of Division 8.6 before
January 1, 2013.
SEC. 3. Section 22973 of the Business and Professions Code is
amended to read:
22973. (a) An application for a license 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 affirming that each retail
location is located 600 feet or more from a public or private
elementary or secondary school, as required pursuant to Section
22960.5.
(6) 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.
(7) The signature of the applicant.
(8) 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 one-time license fee of one hundred dollars ($100) 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 a one-time license fee of one hundred
dollars ($100) per location.
(2) The one-time fee required by this subdivision does not apply
to an application for renewal of a license for a retail location for
which the one-time license fee has already been paid. If a license is
reinstated after its expiration, the retailer, as a condition
precedent to its reinstatement, shall pay a reinstatement fee of one
hundred dollars ($100).
SEC. 4. Section 22973.1 of the Business and Professions Code is
amended to read:
22973.1. (a) The board shall issue a license to a retailer upon
receipt of a completed application and payment of the fees prescribed
in Section 22973, unless any of the following apply:
(1) The retailer, or if the retailer is not an individual, any
person controlling the retailer, has previously been issued a license
that is suspended or revoked by the board for violation of any of
the provisions of this division.
(2) The application is for a license or renewal of a license for a
retail location that is the same retail location as that of a
retailer whose license was revoked or is subject to revocation
proceedings for violation of any of the provisions of this division,
unless:
(A) It has been more than five years since a previous license for
the retail location was revoked.
(B) The person applying for the license provides the board with
documentation demonstrating that the applicant has acquired or is
acquiring the premises or business in an arm's length transaction.
For purposes of this section, an "arm's length transaction" is
defined as a sale in good faith and for valuable consideration that
reflects the fair market value in the open market between two
informed and willing parties, neither under any compulsion to
participate in the transaction. A sale between relatives, related
companies or partners, or a sale for the primary purpose of avoiding
the effect of the violations of this division that occurred at the
retail location, is presumed not to be made at "arm's length."
(3) The retailer, or if the retailer is not an individual, any
person controlling the retailer, has been convicted of a felony
pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.
(4) The retailer does not possess all required permits or licenses
required under the Revenue and Taxation Code.
(5) The application is for a new license issued on or
after January 1, 2013, for a retail location that the applicant does
not affirm is located 600 feet or more from a public or private
elementary or secondary school, as required under paragraph (5) of
subdivision (a) of Section 22973. This paragraph shall not be
construed to prohibit the renewal , reinstatement, or transfer
of a license for a retail location that is within 600 feet of
any school issued prior to January 1, 2013 .
(b) The board may revoke shall cancel
a license issued on or after January 1, 2013, for a
retail location if it is determined that the application is
incorrect, incomplete, or if the license was issued in error. The
license shall be invalid when revoked
canceled , and shall be considered denied for purposes of this
chapter.
(c) (1) Any retailer who is denied a license may petition for a
redetermination of the board's denial of the license within 30 days
after service upon that retailer of the notice of the denial of the
license. If a petition for redetermination is not filed within the
30-day period, the determination of denial becomes final at the
expiration of the 30-day period.
(2) Every petition for redetermination shall be in writing and
shall state the specific grounds upon which the petition is founded.
The petition may be amended to state additional grounds at anytime
prior to the date on which the board issues its order or decision
upon the petition for redetermination.
(3) If the petition for redetermination is filed within the 30-day
period, the board shall reconsider the determination of the denial
and, if the retailer has so requested in the petition, shall grant
the retailer an oral hearing and shall give the retailer at least 10
days' notice of the time and place of the hearing. The board may
continue the hearing from time to time as may be necessary.
(4) The order or decision of the board upon a petition for
redetermination becomes final 30 days after mailing of notice
thereof.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
