Chapter 4License and Administration Fee for Manufacturers and Importers

Section § 22979

Explanation

This law requires manufacturers and importers of cigarettes to obtain and maintain a license to sell in California. They must submit lists of brand families, consent to California courts' jurisdiction, and either waive sovereign immunity or post a surety bond. Participating manufacturers must certify their compliance with the Master Settlement Agreement (MSA) or other regulations. Cigarette packages must meet federal labeling standards, and licenses cannot be transferred. If a license is denied, manufacturers and importers can petition within 30 days for reconsideration. The board can revoke licenses if sovereign immunity defenses are raised during enforcement actions.

(a)CA Business and Professions Code § 22979(a) Every manufacturer and every importer shall obtain and maintain a license to engage in the sale of cigarettes. In order to be eligible for obtaining and maintaining a license under this division, a manufacturer or importer shall do all of the following in the manner specified by the board:
(1)CA Business and Professions Code § 22979(a)(1) Submit to the board a list of all brand families that they manufacture or import.
(2)CA Business and Professions Code § 22979(a)(2) Update the list of all brand families that they manufacture or import whenever a new or additional brand is manufactured or imported, or a listed brand is no longer manufactured or imported.
(3)CA Business and Professions Code § 22979(a)(3) Consent to jurisdiction of the California courts for the purpose of enforcement of this division, Sections 104555 to 104557, inclusive, of the Health and Safety Code, Section 30165.1 of the Revenue and Taxation Code, and regulations adopted pursuant thereto, and appoint a registered agent for service of process in this state and identify the registered agent to the board and the Attorney General.
(4)CA Business and Professions Code § 22979(a)(4) Waive any sovereign immunity defense that may apply to any enforcement action brought by the Attorney General or the board to enforce this division, Sections 104555 to 104557, inclusive, of the Health and Safety Code, or Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and regulations adopted thereto. Any waiver shall be express and in writing, in a form and manner acceptable to the Attorney General. In lieu of this waiver, a manufacturer or importer may file with the Attorney General a surety bond in a form and manner directed by the Attorney General, written in favor of the State of California and conditioned on the performance by the manufacturer or importer of all its duties and obligations under this division, Sections 104555 to 104557, inclusive, of the Health and Safety Code, Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and regulations adopted thereto. The bond shall be posted by a corporate surety located within the United States in an amount equal to the greater of fifty thousand dollars ($50,000) or the amount of escrow the manufacturer or importer in either its current or predecessor form was required to deposit as a result of the largest of its most recent five calendar years’ sales in California. The bond may be drawn upon by the Attorney General to cover unsatisfied escrow obligations, tax obligations, claims for penalties, claims for monetary damages, and any other liabilities that are subject to the licensee’s claim of sovereign immunity against enforcement of the laws specified above. In the event a nonparticipating manufacturer is required to post a surety bond under this paragraph, the amount of the bond shall be reduced by the amount of any surety bond that is in force and required of that nonparticipating manufacturer under paragraph (5) of subdivision (c) of Section 30165.1 of the Revenue and Taxation Code. A manufacturer or importer that has neither waived any sovereign immunity defense nor posted a surety bond as provided in this section shall not be eligible to obtain and maintain a license under this division.
(b)CA Business and Professions Code § 22979(b) In order to be eligible for obtaining and maintaining a license under this division, a manufacturer or importer that is a “tobacco product manufacturer” in subdivision (i) of Section 104556 of the Health and Safety Code, shall do all of the following in the manner specified by the board:
(1)CA Business and Professions Code § 22979(b)(1) Certify to the board that it is a “participating manufacturer” as defined in subsection II(jj) of the “Master Settlement Agreement” (MSA), or is in full compliance with paragraph (2) of subdivision (a) of Section 104557 of the Health and Safety Code, Section 30165.1 of the Revenue and Taxation Code, and regulations adopted pursuant thereto. Any person who makes a certification 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.
(2)CA Business and Professions Code § 22979(b)(2) Submit to the board a list of all brand families that fit under the category applicable to the manufacturer or importer, in accordance with the following:
(A)CA Business and Professions Code § 22979(b)(2)(A) Brand families that are to be counted, in the unit volume and market shares determined pursuant to subsections II(z) and II(mm) of the MSA and Exhibit E thereto, in calculating the manufacturer’s annual payments under the MSA.
(B)CA Business and Professions Code § 22979(b)(2)(B) Brand families that are to be counted in calculating the manufacturer’s escrow deposits under paragraph (2) of subdivision (a) of Section 104557 of the Health and Safety Code.
(C)CA Business and Professions Code § 22979(b)(2)(C) The manufacturer or importer shall update the list whenever a new or additional brand is manufactured or imported or a listed brand is no longer manufactured or imported.
(c)CA Business and Professions Code § 22979(c) The board may not grant or permit the maintenance of a license to any manufacturer or an importer of cigarettes that does not affirmatively certify, both at the time the license is granted and annually thereafter, compliance with paragraph (4) of subdivision (a), that all packages of cigarettes manufactured or imported by that person and distributed in California fully comply with subdivision (b) of Section 30163 of the Revenue and Taxation Code, and that the cigarettes contained in those packages are the subject of filed reports that fully comply with all requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. Sec. 1331 et seq.) for the reporting of ingredients added to cigarettes. For purposes of the federal Cigarette Labeling and Advertising Act requirement, cigars weighing three pounds or less per 1,000 are excluded from the definition of cigarette.
(d)CA Business and Professions Code § 22979(d) A license issued to a manufacturer or an importer under this division is only valid with respect to the manufacturer or importer designated on the license and may not be transferred or assigned to another manufacturer or importer.
(e)CA Business and Professions Code § 22979(e) Any manufacturer or importer that is issued a license under this division that does not commence business in the manner specified or designated in the license, ceases to do business in the manner specified or designated in the license, or is notified that the license is suspended or revoked, shall immediately surrender that license to the board.
(f)Copy CA Business and Professions Code § 22979(f)
(1)Copy CA Business and Professions Code § 22979(f)(1) Any manufacturer or any importer 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 manufacturer or that importer 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)CA Business and Professions Code § 22979(f)(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)CA Business and Professions Code § 22979(f)(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 manufacturer or the importer has so requested in the petition, shall grant an oral hearing and shall give the manufacturer or the importer 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)CA Business and Professions Code § 22979(f)(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.
(g)CA Business and Professions Code § 22979(g) In any action brought by the Attorney General or the board to enforce this division, Sections 104555 to 104557, inclusive, of the Health and Safety Code, Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, or regulations adopted thereto, including, but not limited to, an action to suspend or revoke a license issued under this section, if the licensee raises a sovereign immunity defense with respect to an aspect of that proceeding, the license in question shall be subject to revocation. In the event of a revocation under this subdivision, the person whose license has been revoked shall not be eligible for a license under this section in the future, unless that person agrees to waive any sovereign immunity defense that may apply to an enforcement action brought by the Attorney General or the board to enforce this division, Sections 104555 to 104557, inclusive, of the Health and Safety Code, Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, or regulations adopted thereto. The Attorney General shall inform the board in the event a sovereign immunity defense is raised by a licenseholder.
cigarette manufacturers importers license requirements brand family list sovereign immunity waiver surety bond Master Settlement Agreement participating manufacturer federal labeling standards license revocation petition for redetermination court jurisdiction license transfer business compliance Attorney General enforcement
(Amended by Stats. 2010, Ch. 607, Sec. 5.5. (AB 2733) Effective January 1, 2011.)

Section § 22979.1

Explanation

To get a license as a manufacturer or importer, you need to fill out a specific form with details like your name, address, and phone number, as well as information about your corporate office and any past licenses. You must also sign the form under oath, and name someone in California to receive legal documents on your behalf. The board might ask for more information and can check if you meet all requirements. They also provide an option to download and submit this form online.

(a)CA Business and Professions Code § 22979.1(a) An application for a license by a manufacturer or by an importer shall be on a form prescribed by the board and shall include the following:
(1)CA Business and Professions Code § 22979.1(a)(1) The name, address, and telephone number of the applicant. The business name, address, and telephone number of the corporate offices. Citations issued to licensees shall be forwarded to all addressees on the license.
(2)CA Business and Professions Code § 22979.1(a)(2) License number for any other valid licenses or permits issued by the board.
(3)CA Business and Professions Code § 22979.1(a)(3) Signature of the applicant under oath to verify application information.
(4)CA Business and Professions Code § 22979.1(a)(4) The name, address, and telephone number of the person designated by the manufacturer or the importer as its agent for receipt of service of process in this state.
(5)CA Business and Professions Code § 22979.1(a)(5) Any other information the board may require.
(b)CA Business and Professions Code § 22979.1(b) The board may conduct an inquiry to determine whether the applicant complies with the provisions of this division.
(c)CA Business and Professions Code § 22979.1(c) The board shall provide electronic means for applicants to download and submit applications.
manufacturer license application importer license requirements board-prescribed form license citations license verification process corporate office information agent for service of process license compliance inquiry electronic application submission signature under oath
(Added by Stats. 2003, Ch. 890, Sec. 1. Effective January 1, 2004.)

Section § 22979.2

Explanation
This section states that all cigarette manufacturers and importers must pay a fee to the board. By January 1, 2004, they needed to pay one cent per package of cigarettes shipped into California in 2001. This applies to those required to have a license. New licensees after December 2003 have 90 days to pay after being notified. New entrants in the market pay a fee based on their estimated market share of sales, ranging between the smallest and eighth largest manufacturer. The board oversees fee collection following specific procedures in the Revenue and Taxation Code.
(a)CA Business and Professions Code § 22979.2(a) On or before January 1, 2004, every manufacturer and every importer shall pay to the board an administration fee. The amount of the administration fee shall be one cent ($0.01) per package of cigarettes (1) manufactured or imported by the manufacturer or the importer and (2) shipped into this state during the 2001 calendar year as reported to the board. The board shall notify each manufacturer and each importer of the amount due under this section.
(b)CA Business and Professions Code § 22979.2(b) This section shall apply to every manufacturer and every importer required to be licensed pursuant to Section 22979. All manufacturers and all importers that may become eligible for licensure on or after December 1, 2003, shall be notified by the board of the appropriate fee due and shall pay that fee within 90 days of notification.
(c)CA Business and Professions Code § 22979.2(c) All manufacturers and all importers that begin operations in the state after enactment of this division shall be charged a fee commensurate with their respective market share of (1) cigarettes manufactured or imported by the manufacturer or the importer and (2) sold in this state during the next calendar year as estimated by the board. The fee shall be at an amount not less than that paid pursuant to subdivision (a) by the smallest manufacturer, but may not be more than that paid by the eighth largest manufacturer.
(d)CA Business and Professions Code § 22979.2(d) The board shall administer this fee in accordance with the Fee Collection Procedures Law, Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code.
cigarette manufacturers importers administration fee California licensure market share fee collection Revenue and Taxation Code January 1 2004 smallest manufacturer eighth largest manufacturer license requirement 90 days notification Fee Collection Procedures Law packaged cigarettes
(Amended by Stats. 2005, Ch. 512, Sec. 3. Effective January 1, 2006.)

Section § 22979.21

Explanation

If you are a tobacco manufacturer or importer, you must have a license to sell tobacco products in California. To get and keep this license, you need to give the state board a list of the tobacco products you make or import and update it if there are changes. You also must agree to let California courts handle any legal issues related to your license and have someone in the state who can receive legal papers for you. Having a person to get legal papers doesn't mean you have a tax obligation in California. This rule has been in effect since May 1, 2007.

Every manufacturer or importer of tobacco products shall obtain and maintain a license under this division to engage in the sale of tobacco products. In order to be eligible for obtaining and maintaining a license under this division, a manufacturer or importer shall do all of the following in the manner specified by the board:
(a)CA Business and Professions Code § 22979.21(a) Submit to the board a list of all tobacco products they manufacture or import.
(b)CA Business and Professions Code § 22979.21(b) Update the list of all tobacco products brands they manufacture or import whenever a new or additional brand is manufactured or imported or a listed brand is no longer manufactured or imported.
(c)CA Business and Professions Code § 22979.21(c) Consent to jurisdiction of the California courts for the purpose of enforcement of this division and appoint a registered agent for service of process in this state and identify the registered agent to the board.
(d)CA Business and Professions Code § 22979.21(d) The Legislature finds that solely appointing a registered agent for the purpose of service of process in this state pursuant to this subdivision does not establish a nexus with this state for tax purposes.
(e)CA Business and Professions Code § 22979.21(e) This section shall become operative May 1, 2007.
tobacco manufacturer license tobacco importer license tobacco product list California jurisdiction consent registered agent for service enforcement of tobacco laws service of process licensing requirements update product brands tax nexus implications
(Added by Stats. 2006, Ch. 501, Sec. 4. Effective January 1, 2007. Section operative May 1, 2007, by its own provisions.)

Section § 22979.22

Explanation

This law outlines what tobacco product manufacturers and importers must include when applying for a license. Applicants need to fill out a specific form with details like their name, contact information, and any existing licenses they have. They must affirm that they have not committed a felony or violated any regulations regarding tobacco. The application must also be truthful, as false information can lead to jail time or fines. An applicant needs to provide a contact person for legal matters, and the board can verify the information's accuracy. Additionally, the board offers electronic options for completing the application process.

(a)CA Business and Professions Code § 22979.22(a) An application for a license by a manufacturer or by an importer of tobacco products shall be on a form prescribed by the board and shall include the following:
(1)CA Business and Professions Code § 22979.22(a)(1) The name, address, and telephone number of the applicant. For applicants whose corporate offices are at a separate location, the business name, address, and telephone number of the corporate office. Citations issued to licensees shall be forwarded to all addressees on the license.
(2)CA Business and Professions Code § 22979.22(a)(2) If any other licenses have been issued by the board to the applicant, the license or permit numbers for each license or permit then in effect.
(3)CA Business and Professions Code § 22979.22(a)(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)CA Business and Professions Code § 22979.22(a)(4) 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 imprisonment and fine.
(5)CA Business and Professions Code § 22979.22(a)(5) Signature of the applicant.
(6)CA Business and Professions Code § 22979.22(a)(6) The name, address, and telephone number of the person designated by the manufacturer or the importer as its agent for receipt of service of process in this state.
(7)CA Business and Professions Code § 22979.22(a)(7) Any other information the board may require.
(b)CA Business and Professions Code § 22979.22(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application.
(c)CA Business and Professions Code § 22979.22(c) The board shall provide electronic means for applicants to download and submit applications.
tobacco license application manufacturer requirements importer application felony affirmation license verification contact information electronic application submission violations statement application accuracy truthful application misdemeanor penalties designated agent service of process board investigation applicant signature
(Added by Stats. 2006, Ch. 501, Sec. 5. Effective January 1, 2007.)

Section § 22979.23

Explanation

This law requires manufacturers and importers of tobacco products to pay a one-time license fee when they apply for a license. For chewing tobacco or snuff, the fee is $10,000. For other tobacco products, the fee is $2,000. If a business deals in both types of tobacco, the fees are capped at $10,000 in total.

(a)CA Business and Professions Code § 22979.23(a) Every manufacturer or importer of chewing tobacco or snuff shall submit with each application a one-time license fee of ten thousand dollars ($10,000).
(b)CA Business and Professions Code § 22979.23(b) Every manufacturer or importer of tobacco products, excluding chewing tobacco or snuff, shall submit with each application a one-time license fee of two thousand dollars ($2,000).
(c)CA Business and Professions Code § 22979.23(c) If a manufacturer or importer is required to submit an application under, and to pay the fees required by, both subdivisions (a) and (b), the total amount of fees required to be submitted under this section shall not exceed ten thousand dollars ($10,000).
chewing tobacco snuff tobacco manufacturer license tobacco importer license one-time license fee tobacco products capped license fees application fee tobacco product regulation business licensing
(Added by Stats. 2006, Ch. 501, Sec. 6. Effective January 1, 2007.)

Section § 22979.24

Explanation

If you're a tobacco manufacturer or importer with a specific license, you must send a monthly electronic report to the department. This report should list every distributor you ship tobacco products to and the total cost at wholesale. If you don't follow these rules, your license might get suspended or revoked. Also, the information in your report is confidential and not available to the public. These rules have been effective since May 2007.

(a)CA Business and Professions Code § 22979.24(a) Every manufacturer or importer holding a license pursuant to Section 22979.21 shall file, using electronic media in a manner specified by the department, a monthly report to the department. The monthly report shall include, but is not limited to, the following:
(1)CA Business and Professions Code § 22979.24(a)(1) A list of all distributors licensed pursuant to Section 22975 to which the manufacturer or importer shipped its tobacco products or caused its tobacco products to be shipped.
(2)CA Business and Professions Code § 22979.24(a)(2) The total wholesale cost of the products.
(b)CA Business and Professions Code § 22979.24(b) The department may suspend the license or revoke the license, pursuant to the provisions applicable to the revocation of a license set forth in Section 30148 of the Revenue and Taxation Code, of any importer or any manufacturer that has failed to comply with the requirements of this section.
(c)CA Business and Professions Code § 22979.24(c) All information and records provided to the department pursuant to subdivision (a) are confidential in nature and shall not be disclosed by the department. Information required under subdivision (a) are not public records under the California Public Records Act, as described in Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code and shall not be open to public inspection.
(d)CA Business and Professions Code § 22979.24(d) The amendments made to this section by the act adding this subdivision shall become operative May 1, 2007.
tobacco manufacturer reporting monthly electronic report wholesale cost of tobacco license suspension confidential records public records exemption distributor list license revocation tobacco product shipment Revenue and Taxation Code Section 30148
(Amended by Stats. 2022, Ch. 28, Sec. 16. (SB 1380) Effective January 1, 2023.)

Section § 22979.3

Explanation
This law states that the department must give access to its database of licenses for tobacco manufacturers and importers to certain agencies if they request it. These agencies include public health, the Attorney General's office, and law enforcement. The access is strictly for enforcing tobacco control laws, and they must protect personal information according to privacy laws.
The department shall, upon request, provide to the State Department of Public Health, the office of the Attorney General, a law enforcement agency, a local lead agency, and any agency authorized to enforce or administer state or local tobacco control laws, access to the department’s database of licenses issued to manufacturers and importers for locations within the jurisdiction of that agency, local lead agency, or law enforcement agency. The agencies authorized by this section to access the department’s database shall access and use the department’s database only for purposes of enforcing tobacco control laws and shall adhere to all state laws, policies, and regulations pertaining to the protection of personal information and individual privacy.
tobacco control laws license database access personal information protection State Department of Public Health office of the Attorney General law enforcement agency local lead agency tobacco manufacturers tobacco importers privacy regulations state and local tobacco laws jurisdictional access enforcement purposes
(Amended by Stats. 2021, Ch. 432, Sec. 5. (SB 824) Effective January 1, 2022.)

Section § 22979.4

Explanation

If you are an importer of cigarettes or tobacco products in California, you must keep detailed purchase records. These records must meet specific standards and be kept at your business location for one year. Additionally, you need to have them available for inspection for a total of four years. If you don't follow these rules, you could face penalties.

All importers shall retain purchase records that meet the requirements set forth in Section 22979.5 for all cigarettes or tobacco products purchased and other records required by the board. The records shall be maintained for a period of one year from the date of purchase on the importer’s premises identified in the license, and thereafter, the records shall be made available for inspection by the board or a law enforcement agency for a period of four years. Any importer found in violation of these requirements, or any person who fails, refuses, or neglects to retain or make available invoices for inspection and copying in accordance with this section shall be subject to penalties pursuant to Section 22981.
importer purchase records cigarettes tobacco products inspection record retention law enforcement agency penalties Section 22979.5 Section 22981 licensing requirements California Board invoicing compliance recordkeeping requirements
(Amended by Stats. 2004, Ch. 82, Sec. 6. Effective June 30, 2004.)

Section § 22979.5

Explanation

If you're a manufacturer or importer of cigarettes and tobacco products in California, you must keep detailed records of your sales for four years. You need to keep the past year's invoices at your licensed place of business. These records should be ready for inspection by the authorities at any time. Not following these rules can lead to misdemeanor charges, which come with penalties.

(a)CA Business and Professions Code § 22979.5(a) Each manufacturer and each importer of cigarette and tobacco products subject to licensing under this chapter shall maintain accurate and complete records relating to the sale of those products, including, but not limited to, receipts, invoices, and other records as may be required by the board, during the past four years with invoices for the past year to be maintained on the premises for which the license was issued, and shall make these records available upon request by a representative of the board or a law enforcement agency.
(b)CA Business and Professions Code § 22979.5(b) Failure of a manufacturer or an importer to comply with this section shall be a misdemeanor subject to penalties pursuant to Section 22981.
cigarette manufacturers tobacco importers record keeping sales records receipts invoices compliance law enforcement inspection business premises misdemeanor penalties Section 22981 licensing requirements California tobacco regulation legal compliance board representative
(Added by Stats. 2003, Ch. 890, Sec. 1. Effective January 1, 2004.)

Section § 22979.6

Explanation

This law requires manufacturers and importers to include specific information on every invoice when selling cigarettes or tobacco products. Invoices must list the seller's and buyer's names, addresses, phone numbers, and license numbers. They must also have an itemized list of the products sold. Invoices should be clear and easy to read. Not following these rules could lead to criminal charges.

(a)CA Business and Professions Code § 22979.6(a) Each manufacturer and each importer shall include the following information on each invoice for the sale for distribution, wholesale, or retail sale of cigarettes or tobacco products:
(1)CA Business and Professions Code § 22979.6(a)(1) The name, address, and telephone number of the manufacturer, or importer.
(2)CA Business and Professions Code § 22979.6(a)(2) The license number of the manufacturer or importer as provided by the board.
(3)CA Business and Professions Code § 22979.6(a)(3) The name, address, and license number of the person to whom cigarettes or tobacco products are sold.
(4)CA Business and Professions Code § 22979.6(a)(4) An itemized listing of the cigarettes or tobacco products sold.
(b)CA Business and Professions Code § 22979.6(b) Each invoice for the sale of cigarettes or tobacco products shall be legible and readable.
(c)CA Business and Professions Code § 22979.6(c) Failure to comply with the requirements of this section shall be a misdemeanor subject to penalties pursuant to Section 22981.
invoice requirements manufacturer information importer information license number cigarettes tobacco products sale information legible invoices distribution sale wholesale sale retail sale itemized listing misdemeanor penalties compliance business regulation
(Added by Stats. 2003, Ch. 890, Sec. 1. Effective January 1, 2004.)

Section § 22979.7

Explanation

This law section states that if a manufacturer or importer breaks any rules in this division, the authorities can take certain actions. For a first offense, they might suspend or revoke the business's license. If it happens again, they can impose a fine on top of those actions. The fine can be either five times the retail value of any seized tobacco products or cigarettes, or $5,000, whichever is greater.

In addition to any other civil or criminal penalty provided by law, upon a finding that a manufacturer or importer has violated any provision of this division, the board may take the following actions:
(a)CA Business and Professions Code § 22979.7(a) In the case of the first offense, the board may revoke or suspend the license or licenses of the manufacturer or importer pursuant to the procedures applicable to the revocation of a license set forth in Section 30148 of the Revenue and Taxation Code.
(b)CA Business and Professions Code § 22979.7(b) In the case of a second or any subsequent offense, in addition to the action authorized under subdivision (a), the board may impose a civil penalty in an amount not to exceed the greater of either of the following:
(1)CA Business and Professions Code § 22979.7(b)(1) Five times the retail value of the seized cigarettes or tobacco products defined as cigarettes under this section.
(2)CA Business and Professions Code § 22979.7(b)(2) Five thousand dollars ($5,000).
manufacturer penalties importer violations license revocation license suspension civil penalty tobacco products first offense consequences subsequent offense fines retail value fine seized cigarettes Section 30148 Revenue and Taxation Code second offense penalties cigarette regulations tobacco violation consequences
(Amended by Stats. 2005, Ch. 512, Sec. 4. Effective January 1, 2006.)