California Cigarette and Tobacco Products Licensing Act of 2003

April RoeselerSTORE Training CallJuly 2005

State License Provisions

Cigarette Manufacturer/importers (1x only fee at a rate of $0.01/cigarette)

Tobacco Wholesalers/Distributors ($1,000 annual fee)

Tobacco retailers (1x only fee with annual renewal)

Sunsets 2010, State Board of Equalization projects sufficient funding through 2006

State Retail License Requirements

Effective June 30, 2004$100 one time only fee per locationAnnual renewal (no fee for renewal)Display the license viewable to the publicAdministered by the State Board of

EqualizationRetailers must purchase cigarettes from

a licensed wholesaler or distributor

Sales to Minors Provisions

License suspension and revocation provisions for illegal tobacco sales to minors only go into effect in a year in which the statewide rate of illegal tobacco sales to minors is 13% or greater 2010 Health People goal is a sales rate of 5% Illegal sales rates vary considerably by community

and store type

Suspension/Revocation Criteria

Suspension: 4 convictions against the retailer for PC 308 or STAKE within 12 months

Revocation: 8 convictions against the retailer for PC 308 or STAKE within 24 months

Problems with Suspension/Revocation Provisions

PC 308 convictions are typically against a clerk

There are no convictions within STAKE since it is a civil, not criminal law

No required reporting of PC 308 provisionsFDB is providing data to BOE BOE agreed to send a letter to the courts

requesting PC 308 convictions

List of Licensed Retailers

Access to the database of tobacco retailers is restricted for law enforcement purposes only TCS is not permitted to provide the database for

youth purchase surveys or direct mail activities Try contacting BOE:

Rebecca Vega

Business Taxes Specialist

Excise Taxes and Fees Division

Phone (916) 327-7209

Retailer Training Program

DHS is required to provide tobacco retailers and their employees training upon a first conviction of PC 308 or the STAKE Act No reporting requirements of violations to DHS No funding provided DHS training presentation, clerk quiz, and letter are

available at:

http://www.dhs.ca.gov/tobacco/html/publications.htm

Penalties

Selling w/o retail license: up to $5,000Failure to post license: $500Failure to maintain invoices: up to $5,000In a year in which sales rate is >13%, in

addition to STAKE/PC 308 penalties$500 1st sale$1,000 2nd sale

Anti-Preemption Language

22971.3 Nothing in this division preempts or supersedes any local tobacco control law other than those related to the collection of state taxes. Local licensing laws may provide for the suspension or revocation of the local license for any violation of a state tobacco control law.

Summary of Problems with State Licensing

State licensing program is not sustainable: it sunsets in 2010 and there are insufficient funds to continue the program

No funds are earmarked for sales to minors enforcement

State provisions for license suspension/revocation are too rigorous

Restricted access to list of licensees

Benefits of Local Licensing

Other states use dual state/local licensing models

Could “forgive” the $100 1x fee required by the state in a local licensing scheme

Ability to earmark fees for tobacco sales to minors enforcement and have reporting requirements for sales

Ability to set more practical provisions for license suspension & revocation

Ability to remove tobacco ads during license suspension/revocation period

What Gray Davis Said

“I am strongly opposed to the provisions of this measure that allow a vendor to remain licensed by the State to sell tobacco after they have been sanctioned numerous times for selling cigarettes to minors. I urge the Legislature to enact tougher legislation next year that enables the state to aggressively monitor and enforce laws prohibiting tobacco sales to minors and specifies strong penalties on those who violate the law.”