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California Cigarette and Tobacco Products Licensing Act of 2003

California Cigarette and Tobacco Products Licensing Act of 2003. April Roeseler STORE Training Call July 2005. State License Provisions. Cigarette Manufacturer/importers (1x only fee at a rate of $0.01/cigarette) Tobacco Wholesalers/Distributors ($1,000 annual fee)

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California Cigarette and Tobacco Products Licensing Act of 2003

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  1. California Cigarette and Tobacco Products Licensing Act of 2003 April Roeseler STORE Training Call July 2005

  2. 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

  3. State Retail License Requirements • Effective June 30, 2004 • $100 one time only fee per location • Annual renewal (no fee for renewal) • Display the license viewable to the public • Administered by the State Board of Equalization • Retailers must purchase cigarettes from a licensed wholesaler or distributor

  4. 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

  5. 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

  6. 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 provisions • FDB is providing data to BOE • BOE agreed to send a letter to the courts requesting PC 308 convictions

  7. 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

  8. 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

  9. Penalties • Selling w/o retail license: up to $5,000 • Failure to post license: $500 • Failure to maintain invoices: up to $5,000 • In a year in which sales rate is >13%, in addition to STAKE/PC 308 penalties • $500 1st sale • $1,000 2nd sale

  10. 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.

  11. 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

  12. 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

  13. 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.”

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