Section § 22980

Explanation

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.

(a)CA Business and Professions Code § 22980(a) A peace officer or department employee granted limited peace officer status pursuant to paragraph (6) of subdivision (a) of Section 830.11 of the Penal Code, upon presenting appropriate credentials, is authorized to enter any place as described in paragraph (2) or (3) and to conduct inspections in accordance with all of the following:
(1)CA Business and Professions Code § 22980(a)(1) Inspections shall be performed in a reasonable manner and at times that are reasonable under the circumstances, taking into consideration the normal business hours of the place to be entered.
(2)CA Business and Professions Code § 22980(a)(2) Inspections may be at any place at which cigarettes or tobacco products are sold, produced, or stored or at any site where evidence of activities involving evasion of cigarette or tobacco products tax and violations of Section 30165.1 of the Revenue and Taxation Code may be discovered.
(3)CA Business and Professions Code § 22980(a)(3) Inspections may be at any place where evidence of a violation of Section 104559.1 or 104559.5 of the Health and Safety Code may be discovered.
(4)CA Business and Professions Code § 22980(a)(4) Inspections shall be requested or conducted no more than once in a 24-hour period.
(b)CA Business and Professions Code § 22980(b) Any person that refuses to allow an inspection shall be subject to the penalties imposed pursuant to Section 22981.

Section § 22980.1

Explanation

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.

(a)CA Business and Professions Code § 22980.1(a) A manufacturer or importer shall not sell cigarettes or tobacco products to a distributor, wholesaler, retailer, or any other person who is not licensed pursuant to this division or whose license has been suspended or revoked.
(b)Copy CA Business and Professions Code § 22980.1(b)
(1)Copy CA Business and Professions Code § 22980.1(b)(1) Except as provided in paragraph (2), a distributor or wholesaler shall not sell cigarettes or tobacco products to a retailer, wholesaler, distributor, or any other person who is not licensed pursuant to this division or whose license has been suspended or revoked.
(2)CA Business and Professions Code § 22980.1(b)(2) This subdivision does not apply to any sale of cigarettes or tobacco products by a distributor, wholesaler, or any other person to a retailer, wholesaler, distributor, or any other person that the state, pursuant to the United States Constitution, the laws of the United States, or the California Constitution, is prohibited from regulating.
(c)CA Business and Professions Code § 22980.1(c) A retailer, distributor, or wholesaler shall not purchase packages of cigarettes or tobacco products from a manufacturer or importer who is not licensed pursuant to this division or whose license has been suspended or revoked.
(d)Copy CA Business and Professions Code § 22980.1(d)
(1)Copy CA Business and Professions Code § 22980.1(d)(1) A retailer or wholesaler shall not purchase cigarettes or tobacco products from any person who is not licensed pursuant to this division or whose license has been suspended or revoked.
(2)CA Business and Professions Code § 22980.1(d)(2) Notwithstanding subdivision (c), a distributor shall not purchase cigarettes or tobacco products from any person who is required to be licensed pursuant to this division but who is not licensed or whose license has been suspended or revoked.
(e)CA Business and Professions Code § 22980.1(e) Each separate sale to, or by, a retailer, wholesaler, distributor, importer, manufacturer, or any other person who is not licensed pursuant to this division shall constitute a separate violation.
(f)CA Business and Professions Code § 22980.1(f) A manufacturer, distributor, wholesaler, or importer shall not sell cigarette or tobacco products to any retailer or wholesaler whose license has been suspended or revoked unless all outstanding debts of that retailer or wholesaler that are owed to a wholesaler or distributor for cigarette or tobacco products are paid and the license of that retailer or wholesaler has been reinstated by the board. Any payment received from a retailer or wholesaler shall be credited first to the outstanding debt for cigarettes or tobacco products and must be immediately reported to the board. The board shall determine the debt status of a suspended retailer or wholesaler licensee 25 days prior to the reinstatement of the license.
(g)CA Business and Professions Code § 22980.1(g) An importer, distributor, or wholesaler, or distributor functioning as a wholesaler, or retailer, shall not purchase, obtain, or otherwise acquire any package of cigarettes to which a stamp or meter impression may not be affixed in accordance with subdivision (b) of Section 30163 or subdivision (e) of Section 30165.1 of the Revenue and Taxation Code, or any cigarettes obtained from a manufacturer or importer that cannot demonstrate full compliance with all requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. Sec. 1335a et seq.) for the reporting of ingredients added to cigarettes.
(h)Copy CA Business and Professions Code § 22980.1(h)
(1)Copy CA Business and Professions Code § 22980.1(h)(1) Failure to comply with the provisions of this section is a misdemeanor subject to penalties pursuant to Section 22981.
(2)CA Business and Professions Code § 22980.1(h)(2) Notwithstanding paragraph (1), a manufacturer or importer who uses the most up-to-date licensing information provided by the board on the board’s website to determine a person’s licensing status is presumed to be in compliance with this section.
(i)CA Business and Professions Code § 22980.1(i) The amendments that are made to this section by the act adding this subdivision shall become operative May 1, 2007.

Section § 22980.2

Explanation

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.

(a)CA Business and Professions Code § 22980.2(a) A person or entity that engages in the business of selling cigarettes or tobacco products in this state either without a valid license or after a license has been suspended or revoked, and each officer of any corporation that so engages in this business, is guilty of a misdemeanor punishable as provided in Section 22981.
(b)CA Business and Professions Code § 22980.2(b) Each day after notification by the board or by a law enforcement agency that a manufacturer, wholesaler, distributor, importer, retailer, or any other person required to be licensed under this division offers cigarette and tobacco products for sale or exchange without a valid license for the location from which they are offered for sale shall constitute a separate violation.
(c)CA Business and Professions Code § 22980.2(c) Continued sales or gifting of cigarettes and tobacco products either without a valid license or after a notification of suspension or revocation shall constitute a violation punishable as provided in Section 22981, and shall result in the seizure of all cigarettes and tobacco products in the possession of the person by the board or a law enforcement agency. Any cigarettes and tobacco products seized by the board or by a law enforcement agency shall be deemed forfeited.
(d)CA Business and Professions Code § 22980.2(d) For the purposes of this section, notwithstanding subdivision (s) of Section 22971, “tobacco products” includes a product or device as defined in subdivision (d) of Section 22950.5.
(e)CA Business and Professions Code § 22980.2(e) This section shall be operative on January 1, 2017.

Section § 22980.3

Explanation

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.

(a)CA Business and Professions Code § 22980.3(a) Licenses issued pursuant to this division shall be subject to suspension or revocation for violations of this division or the Revenue and Taxation Code as provided in this section.
(1)CA Business and Professions Code § 22980.3(a)(1) In addition to any applicable fines or penalties for a violation, upon first conviction of a violation, a licensee shall receive a written notice from the board detailing the suspension and revocation provisions of this division. At its discretion, the board may also suspend a license for up to 30 days.
(2)CA Business and Professions Code § 22980.3(a)(2) In addition to any applicable fines or penalties for a violation, upon a second conviction of a violation within four years of a previous violation, the license shall be revoked.
(b)CA Business and Professions Code § 22980.3(b) The date of the occurrence of a violation shall be used to calculate the duration between subsequent violations. A violation shall be noted in the license record at the board only after judicial conviction or final adjudication of a violation.
(c)CA Business and Professions Code § 22980.3(c) Upon updating a record for a violation triggering a suspension, the board shall serve the licensee with a notice of suspension and shall order the licensee to cease the sale, gifting, or displaying for sale of cigarettes or tobacco products for the period of the suspension. The notice of suspension shall inform the licensee of the effective dates of the suspension.
(d)CA Business and Professions Code § 22980.3(d) Continued sales or gifting of cigarettes or tobacco products after the effective date of the suspension shall constitute a violation of this division and result in the revocation of a license.
(e)CA Business and Professions Code § 22980.3(e) Upon completion of a suspension period, a license shall be reinstated by the board upon certification that all outstanding debts of that retailer or wholesaler that are owed to a wholesaler or distributor for the purchase of cigarettes and tobacco products are paid.
(f)CA Business and Professions Code § 22980.3(f) Upon updating a record for a violation triggering a revocation, the board shall serve the licensee with a notice of revocation and shall order the licensee to cease the sale, gifting, or displaying for sale of cigarettes or tobacco products on and after the effective date of the revocation. The notice of revocation shall inform the licensee of the effective date of the revocation.
(g)CA Business and Professions Code § 22980.3(g) After a revocation, a previously licensed applicant may apply for a new license after six months. The board may, at its discretion, issue a new license.
(h)CA Business and Professions Code § 22980.3(h) Upon updating a license record for a violation, suspension, or revocation to a license of a person or entity that owns or controls more than one location, the board shall send notice in writing of the violations, suspensions, or revocations within 15 days of the board’s action to the address included in the application and listed on the license for receipt of correspondence or notices from the board.
(i)CA Business and Professions Code § 22980.3(i) Upon suspension or revocation of a license pursuant to this section, the board shall notify all licensed distributors and wholesalers by electronic mail within 48 hours of the suspension or revocation of that license. All licensed distributors and wholesalers shall provide the board and shall update, as necessary, an electronic mail address that the board can use for purposes of making the notifications required by this subdivision.
(j)CA Business and Professions Code § 22980.3(j) Violations by a licensee at one location may not be accumulated against other locations of that same licensee. Violations accumulated against a prior owner at a licensed location may not be accumulated against a new owner at the same licensed location.
(k)CA Business and Professions Code § 22980.3(k) For purposes of this section, a violation includes violations of the Revenue and Taxation Code relating to cigarettes and tobacco products, and violations of this division. Only one violation per discrete action shall be counted toward a suspension or revocation of a license.

Section § 22980.4

Explanation
If someone keeps selling cigarettes or tobacco products after being notified that their permission to do so has been suspended or revoked, they'll face a $1,000 fine for each time they do it. However, they won't face additional penalties under Section 22981.
A person who, after receiving a notice of suspension or revocation, continues to display for sale cigarettes or tobacco products shall be subject to a civil penalty of one thousand dollars ($1,000) for each offense, and shall not be subject to Section 22981.

Section § 22980.5

Explanation

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.

(a)CA Business and Professions Code § 22980.5(a) A retailer whose license has been suspended or revoked by order of the board shall conspicuously post a notice at both of the following locations:
(1)CA Business and Professions Code § 22980.5(a)(1) Each public entrance to the retail location. The notice shall directly face any person who enters the retail location and shall not be obstructed from view or placed at a height of less than four feet or greater than nine feet from the floor.
(2)CA Business and Professions Code § 22980.5(a)(2) Each cash register and other point of retail sale. The notice shall be posted so as to be readily viewable by a person standing at or approaching the cash register or other point of retail sale. The notice shall directly face the purchaser and shall not be obstructed from view or placed at a height of less than four feet or greater than nine feet from the floor.
(b)CA Business and Professions Code § 22980.5(b) The notices described in this section shall be in the size and form prescribed by the board. The notice shall be provided by the board and may be reproduced in the same size and form in order to comply with subdivision (a).
(c)CA Business and Professions Code § 22980.5(c) A retailer whose license was suspended shall post the notice at the retail location that was the subject of the suspension for the duration of the suspension.
(d)CA Business and Professions Code § 22980.5(d) A retailer whose license was revoked shall post the notice at the retail location that was the subject of the revocation for a 30-day period from the effective date of the revocation.
(e)CA Business and Professions Code § 22980.5(e) Every retailer who fails to post the notices as required by this section, who alters the notice provided by the board, or who removes the notice before the posting period required in subdivision (c) or (d), as appropriate, expires, shall be subject, notwithstanding Section 22981, to a civil penalty of one thousand dollars ($1,000) for each offense.

Section § 22981

Explanation

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.

Any violation of this division by any person, except as otherwise provided, is a misdemeanor. Each offense shall be punished by a fine not to exceed five thousand dollars ($5,000), or imprisonment not exceeding one year in a county jail, or both the fine and imprisonment. The court shall order any fines assessed be deposited in the Cigarette and Tobacco Products Compliance Fund.

Section § 22982

Explanation

This law states that anyone being prosecuted for breaking certain rules must be charged within four years of the crime happening.

Any prosecution for a violation of any of the penal provisions of this division shall be instituted within four years after the commission of the offense.

Section § 22983

Explanation

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.

The provisions of Chapter 4 (commencing with Section 55121) of Part 30 of Division 2 of the Revenue and Taxation Code apply with respect to the collection of the fees, civil fines, and penalties imposed pursuant to this division.