Chapter 2License for Retailers of Cigarettes and Tobacco Products
Section § 22971.7
This law section defines what is considered a tobacco product for the purposes of this chapter, referring to the definition in a different section, except for a specific exemption. It mentions that this does not apply to a part of another section of the law, and notes that these rules have been in effect since January 1, 2017.
Section § 22972
If you're a retailer selling cigarettes or tobacco products in California, you need to have a license starting from June 30, 2004. If you have more than one store, you’ll need a separate license for each one, but you can apply for them all at once. The license must be displayed where customers can see it. You can't transfer your license to someone else, and if you stop doing business, or your license is suspended or revoked, you have to give it back immediately. These licenses last for one year and must be renewed yearly. If you open a new store, the license for that store needs to be renewed based on the month you originally got your first store's license.
Section § 22972.1
This law allows a temporary license to be given to retailers even if usual requirements aren't fully met. The temporary license will expire on or before September 30, 2004, or when a regular license is issued. Temporary licenses can be suspended or revoked in the same way as regular licenses.
Section § 22973
If you want to get a license to sell tobacco in specific retail locations in California, you must apply by a certain deadline using a form from the board. The application should include your personal and business contact details, affirmation of no felony convictions or tobacco law violations, details of any other licenses you have, and a truthful declaration of your application's accuracy, as lying can result in a misdemeanor charge. A $265 fee per location is required, and you'll need a separate license for each store if you have multiple locations. The board might investigate your application for truthfulness, but they could issue a license without more checks if you already have a valid alcoholic beverage license for the same spot. Applications can be submitted electronically. Also, starting 2017, you have to renew your license yearly with the same fee per location.
Section § 22973.1
This law covers the issuance of licenses to retailers by the board. A retailer will not receive a license if they've had a previous license suspended or revoked, if they try to use a location tied to a revoked license without waiting five years or proving it was a fair sale, if they have felony convictions related to tax violations, or if they lack necessary permits. Retailers denied a license can ask the board to reconsider within 30 days, stating their reasons in writing and possibly having an oral hearing. The board's decision becomes final 30 days after notice is mailed.
Section § 22973.2
This law requires the department to share its database of tobacco retailer licenses with certain agencies, like public health departments and law enforcement, if they ask for it. These agencies can only use the database to enforce tobacco laws, and they must follow privacy laws to protect people's personal information.
Section § 22973.3
This law outlines the requirements for applying for a license to sell certain tobacco products not taxed under the Cigarette and Tobacco Products Tax Law. Applicants must provide personal and business information, confirm past compliance with tobacco regulations, and disclose any other alcohol or tobacco licenses they hold. A fee is required for each retail location, and electronic submission of applications is available. Retailers must renew their licenses with a fee, and the adequacy of licensing fees for enforcement is reviewed by the Legislature. This law is specifically aimed at retailers selling non-taxed tobacco products who do not already have a valid tobacco retail license.
Section § 22974
If you are a retailer who sells cigarettes or tobacco products, you must keep purchase invoices for four years. For the first year after buying the products, you need to store these records at your shop. If the authorities ask, you must show these invoices during normal business hours. Not complying can lead to penalties.
Section § 22974.1
This law allows a department to seize flavored tobacco products or flavor enhancers if they're being sold illegally by retailers or their employees. If they find these products at any location, they can take them, and those items are considered forfeited. The department has to follow specific procedures related to seizing and handling these products. The terms 'flavored tobacco product' and 'tobacco product flavor enhancer' are defined by another section of the Health and Safety Code.
Section § 22974.2
This law allows law enforcement and a specific department to seize flavored tobacco products from retailers if they are found selling them illegally. These products can either be destroyed or used as evidence in legal proceedings. If seized, the retailer has to pay a fine of $50 per package of the seized products. After a second offense, the retailer's license will be suspended, and on a third offense, the license will be revoked. Collected fines go into a specific fund, and the law also defines what constitutes a 'package' of these products.
Section § 22974.3
In California, if a retailer or person is caught with cigarettes that don't have the required tax stamps, or if they're selling tobacco products without paying the necessary taxes, the items can be seized by law enforcement or the tax board. These products are considered forfeited unless needed as evidence. If caught with fewer than 20 unstamped packages for the first time, penalties include a misdemeanor charge, up to a $1,000 fine, or up to a year in jail. Second-time minor offenses can lead to higher fines and loss of license. For 20 or more unstamped packages, the first offense leads to a $2,000 fine and possible jail time, and repeat offenses incur steeper penalties and revocation of license. Retailers must prove taxes were paid on all tobacco products, and failure to do so results in legal action.
Section § 22974.4
If a retailer, or the person in charge of the retailer, is convicted of certain felonies or has had a permit or license revoked under tax laws, the board will cancel their license to operate.
Section § 22974.5
Section § 22974.7
If a retailer breaks the rules in this division, the authorities can take action against them. For the first offense, they might lose their license temporarily or permanently after a hearing. If they break the rules again, the authorities can fine them. The fine can be bigger than the previous penalty and may be either five times the value of the tobacco goods taken from them or up to $5,000, whichever is more.
Section § 22974.8
This law requires the board to suspend or revoke a retailer's license when notified by the State Department of Public Health about certain violations. The retailer must be given at least 10 days' written notice about the planned suspension or revocation and an opportunity to appeal, but only to fix mistakes or clerical errors. The law does not allow appeals based on whether the retailer actually violated specific health regulations, such as selling tobacco products to minors. The board can change its decision if it finds a mistake or clerical error on its own.