Chapter 5Inspections, Prohibitions, and Penalties
Section § 22980
This law allows designated peace officers or specific department employees to enter businesses selling, producing, or storing cigarettes and tobacco to conduct inspections. These checks should be done reasonably, during normal business hours, and no more than once a day. They're looking for tax evasion or violations of certain health and safety regulations. Refusing an inspection can lead to penalties.
Section § 22980.1
This law makes it illegal for any manufacturer, importer, distributor, wholesaler, or retailer to sell or buy cigarettes or tobacco products from anyone in California unless they have a valid license. It also addresses the issue of selling to someone whose license is suspended or revoked, which is prohibited unless debts are cleared and licenses reinstated. Separate sales violating this rule count as separate offenses. Additional restrictions include ensuring the cigarettes have proper stamps and that manufacturers comply with federal laws about disclosing ingredients. Non-compliance results in misdemeanors with penalties. However, if a manufacturer or importer uses the state's website to verify a party's licensing status, they are presumed to follow the law.
Section § 22980.2
This law makes it illegal to sell cigarettes or tobacco products without a valid license in California, or after such a license has been suspended or revoked. Doing so is considered a misdemeanor. Each day an unlicensed sale occurs counts as a separate violation. If cigarettes or tobacco products are sold or gifted while unlicensed, the items can be seized and are considered forfeited. The definition of 'tobacco products' is expanded in this context. This law took effect on January 1, 2017.
Section § 22980.3
If you have a license to sell cigarettes or tobacco in California, it can be suspended or taken away for breaking certain rules. For a first violation, you'll get a written warning and possibly a 30-day suspension. If you break the rules again within four years, your license will be revoked. The time between violations is counted from the date each violation happens. After a suspension, your license will come back if you’ve paid off any tobacco-related debts. If your license is revoked, you can apply for a new one after six months, but it's up to the authorities to grant it. Violations won't affect multiple locations owned by the same person or new owners at an old location. The board will notify related parties of any suspensions or revocations via email.
Section § 22980.4
Section § 22980.5
If a retailer in California has their license suspended or revoked, they must display a notice stating this at each entrance and cash register area of their store. The notice must be clear and visible, within a specific height range, and provided by the board. Suspended license notices must remain posted for the entire suspension period, while revoked license notices must be displayed for 30 days. Failing to do this, altering the notice, or removing it early can result in a $1,000 fine for each violation.
Section § 22981
If someone breaks the rules set out in this part of the law, they can be charged with a misdemeanor. This could mean a fine of up to $5,000, up to one year in county jail, or both. Any fines that are collected go into the Cigarette and Tobacco Products Compliance Fund.
Section § 22982
This law states that anyone being prosecuted for breaking certain rules must be charged within four years of the crime happening.
Section § 22983
This law says that when collecting fees, fines, and penalties in this specific division, the rules and procedures set out in another section of the tax code will be followed. So, it's essentially pointing to another set of rules for guidance on how to manage collections for these financial obligations.