Disposition Of Funds - - CA Business And Professions

Section § 22990

This law creates a special fund called the Cigarette and Tobacco Products Compliance Fund where money collected from the sales of cigarettes and tobacco products is stored. The funds are strictly for supporting the enforcement of tobacco regulations, particularly in line with the California Cigarette and Tobacco Products Licensing Act of 2003. This includes activities such as destroying illegal tobacco products. Importantly, this fund cannot be used to replace money from the state or local General Fund.

(a) All moneys collected pursuant to this division shall be deposited in the Cigarette and Tobacco Products Compliance Fund, which is hereby created in the State Treasury. No moneys in the Cigarette and Tobacco Products Compliance Fund shall be used to supplant state or local General Fund money for any purpose.

(b) All moneys in the Cigarette and Tobacco Products Compliance Fund are available for expenditure, upon appropriation by the Legislature, solely for the purpose of implementing, enforcing, and administering the California Cigarette and Tobacco Products Licensing Act of 2003, including the seizure and destruction of cigarettes and tobacco products.

Cigarette and Tobacco Products Compliance Fund State Treasury California Cigarette and Tobacco Products Licensing Act of 2003 seizure and destruction tobacco regulation enforcement fund appropriation Legislature General Fund supplanting tobacco licensing illegal tobacco products

(Amended by Stats. 2024, Ch. 849, Sec. 5. (AB 3218) Effective January 1, 2025.)

Section § 22990.5

This section of the law states that starting July 1, 2019, any money collected from taxes on distributing cigarettes and tobacco products cannot be used to fund the enforcement or administration of the California Cigarette and Tobacco Products Licensing Act of 2003.

Notwithstanding Sections 30124 and 30131.3 of the Revenue and Taxation Code or any other law, on or after July 1, 2019, no revenues derived from the taxes imposed upon the distribution of cigarettes and tobacco products by Article 1 (commencing with Section 30101), Article 2 (commencing with Sections 30121), and Article 3 (commencing with Section 30131) of Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code shall be appropriated to the board for the purpose of implementing, enforcing, or administering the California Cigarette and Tobacco Products Licensing Act of 2003.

tax revenue restrictions cigarette tax tobacco tax funding prohibition California Cigarette and Tobacco Products Licensing Act 2003 Revenue and Taxation Code appropriation restrictions tobacco product regulation funding tax allocation fiscal policy on tobacco

(Added by Stats. 2016, Ch. 699, Sec. 5. (AB 2770) Effective January 1, 2017.)

Section § 22990.7

The board must send a yearly report to the Legislature, Governor, and Department of Finance by January 1st. This report looks at whether there’s enough funding for the Cigarette and Tobacco Products Licensing Act. They need to include data and suggestions on whether the fees for licenses are enough to support a good enforcement program. The report must also comply with specific submission requirements under the Government Code.

(a) The board shall report to the Legislature, Governor, and Department of Finance on or before January 1, 2019, and on and before January 1 annually thereafter, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.

(b) The report to the Legislature required by subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

Cigarette and Tobacco Products Licensing Act funding adequacy annual licensing fee enforcement program reporting requirements Legislative report Governor report Department of Finance report Government Code Section 9795 January 1 submission deadline

(Added by Stats. 2016, Ch. 699, Sec. 6. (AB 2770) Effective January 1, 2017.)

Section § 22991

This section of the law allocates $11 million from tobacco-related fees to the State Board of Equalization for the enforcement of California's tobacco licensing laws. It's highlighted that this money comes from fees collected from cigarette and tobacco businesses. Of this amount, $5.4 million is earmarked for the Department of Justice to help with investigations and enforcement through an agreement with the board. Any spending of these funds requires approval from the Director of Finance, and the Department of Finance must alert the legislative committee before any spending is authorized.

The amount of eleven million dollars ($11,000,000) is appropriated from the Cigarette and Tobacco Products Compliance Fund during the 2003–04 fiscal year to the State Board of Equalization for the purpose of implementing, enforcing, and administering the California Cigarette and Tobacco Products Licensing Act of 2003, subject to the following provisions:

(a) Spending under the appropriation made by this subdivision is limited solely to revenues in the fund that are derived from fees imposed on cigarette and tobacco product manufacturers, wholesalers, distributors, importers, and retailers.

(b) Of the total amount appropriated under this subdivision, five million four hundred thousand dollars ($5,400,000) is available for reimbursement to the Department of Justice through an interagency agreement with the board for investigation and enforcement assistance.

(c) The expenditure of any funds from the appropriation made by this subdivision shall require the prior approval of the Director of Finance. The amounts appropriated may be approved for expenditure on an allotment basis and shall be limited to the amounts necessary to carry out the operating and staffing plans for the implementation of the California Cigarette and Tobacco Products Licensing Act of 2003 as approved by the Department of Finance. The Department of Finance shall notify the Joint Legislative Budget Committee of its approval of any expenditure authorization 30 days prior to that approval.

Cigarette and Tobacco Products Compliance Fund State Board of Equalization California Cigarette and Tobacco Products Licensing Act Department of Justice reimbursement tobacco licensing laws tobacco product manufacturers wholesalers distributors importers retailers interagency agreement investigation and enforcement assistance Director of Finance approval Joint Legislative Budget Committee fiscal year 2003–04

(Added by Stats. 2003, Ch. 890, Sec. 1. Effective January 1, 2004.)