Today's Law As Amended


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AB-1749 Cigarettes and tobacco products.(2005-2006)



As Amends the Law Today


SECTION 1.
 It is the intent of the Legislature that all manufacturers or importers of blunt wraps place, or cause to be placed, appropriate labels for tobacco products as required by federal law.

SEC. 2.

 Section 22962 of the Business and Professions Code is amended to read:

22962.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Self-service display” means the open display of tobacco products or tobacco paraphernalia in a manner that is accessible to the general public without the assistance of the retailer or employee of the retailer.
(2) “Tobacco paraphernalia” means cigarette papers or wrappers, blunt wraps as defined in Section 308 of the Penal Code, pipes, holders of smoking materials of all types, cigarette rolling machines, or other instruments or things designed for the smoking or ingestion of tobacco products.
(3) “Tobacco product” means a product or device as defined in subdivision (d) of Section 22950.5 of the Business and Professions Code. any product containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco. 
(4) “Tobacco store” means a retail business that meets all of the following requirements:
(A) Primarily sells tobacco products.
(B) Generates more than 60 percent of its gross revenues annually from the sale of tobacco products and tobacco paraphernalia.
(C) Does not permit any person under 18 years of age to be present or enter the premises at any time, unless accompanied by the person’s parent or legal guardian, as defined in Section 6903 of the Family Code.
(D) Does not sell alcoholic beverages or food for consumption on the premises.
(b) (1) (A) Except as permitted in subdivision (b) of Section 22960, it is unlawful for a person engaged in the retail sale of tobacco products to sell, offer for sale, or display for sale any tobacco product or tobacco paraphernalia by self-service display. A person who violates this section is subject to those civil penalties specified in the schedule in subdivision (a) of Section 22958.
(B) A person who violates this section is subject to those civil penalties specified in the schedule in subdivision (a) of Section 22958.
(2) It is unlawful for a person engaged in the retail sale of blunt wraps to place or maintain, or to cause to be placed or maintained, any blunt wraps advertising display within two feet of candy, snack, or nonalcoholic beverage displayed inside any store or business.
(3) It is unlawful for any person or business to place or maintain, or cause to be placed or maintained, any blunt wrap advertising display that is less than four feet above the floor.
(c) Subdivision (b) shall not apply to the display in a tobacco store of cigars, pipe tobacco, snuff, chewing tobacco, or dipping tobacco, provided that in the case of cigars they are generally not sold or offered for sale in a sealed package of the manufacturer or importer containing less than six cigars. In any enforcement action brought pursuant to this division, the retail business that displays any of the items described in this subdivision in a self-service display shall have the burden of proving that it qualifies for the exemption established in this subdivision.
(d) The Attorney General, a city attorney, a county counsel, or a district attorney may bring a civil action to enforce this section.
(e) This section does not preempt or otherwise prohibit the adoption of a local standard that imposes greater restrictions on the access to tobacco products than the restrictions imposed by this section. To the extent that there is an inconsistency between this section and a local standard that imposes greater restrictions on the access to tobacco products, the greater restriction on the access to tobacco products in the local standard shall prevail.

SEC. 3.

 Section 22971 of the Business and Professions Code is amended to read:

22971.
 For purposes of this division, the following terms shall have the following meanings:
(a) “Brand family” has the same meaning as that term is defined in paragraph (2) of subdivision (a) of Section 30165.1 of the Revenue and Taxation Code. “Board” means the State Board of Equalization. 
(b) “Cigarette” means a cigarette as defined in Section 30003 of the Revenue and Taxation Code.
(c) (1) “Control” or “controlling” means possession, direct or indirect, of the power:
(A) To vote 25 percent or more of any class of the voting securities issued by a person.
(B) To direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, other than a commercial contract for goods or nonmanagement services, or as otherwise provided; however, no individual shall be deemed to control a person solely on account of being a director, officer, or employee of that person.
(2) For purposes of subparagraph (B) of paragraph (1), a person who, directly or indirectly, owns, controls, holds, with the power to vote, or holds proxies representing 10 percent or more of the then outstanding voting securities issued by another person, is presumed to control that other person.
(3) For purposes of this division, the department may determine whether a person in fact controls another person.
(d) “Department” means the California Department of Tax and Fee Administration.
(e) “Display for sale” means the placement of cigarettes or tobacco products in a vending machine or in retail stock for the purpose of selling or gifting the cigarettes or tobacco products. For purposes of this definition, the clear and easily visible display of cigarettes or tobacco products shall create a rebuttable presumption that either were displayed for sale.
(f) “Distributor” means a distributor as defined in Section 30011 of the Revenue and Taxation Code.
(g) “Gifting” means any transfer of title or possession without consideration, exchange, or barter, in any manner or by any means, of cigarettes or tobacco products that have been purchased for resale under a license issued pursuant to this division if the transfer occurs while the license is suspended or after the effective date of its revocation.
(h) (b)  “Importer” means an importer as defined in Section 30019 of the Revenue and Taxation Code.
(i) “Law enforcement agency” means a sheriff, a police department, or a city, county, or city and county agency or department designated by the governing body of that agency to enforce this chapter or to enforce local smoking and tobacco ordinances and regulations.
(j) “License” means a license issued by the department pursuant to this division.
(k) “Licensee” means a person holding a license issued by the department pursuant to this division.
(l) (c)  “Local lead agency” means an agency designated as a local lead agency pursuant to Section 104400 of the Health and Safety “Distributor” means a distributor as defined in Section 30011 of the Revenue and Taxation  Code.
(m) (d)  “Manufacturer” means a manufacturer of cigarettes or tobacco products sold in this state.
(n) “Notice” or “notification” means, unless as otherwise provided, the written notice or notification provided to a licensee by the department by either actual delivery to the licensee or by first-class mail addressed to the licensee at the address on the license.
(o) “Package of cigarettes” means a package as defined in Section 30015 of the Revenue and Taxation Code.
(p) “Person” means a person as defined in Section 30010 of the Revenue and Taxation Code.
(q) (e)  “Retailer” means a person who engages in this state in the sale of cigarettes or tobacco products directly to the public from a retail location. Retailer includes a person who operates vending machines from which cigarettes or tobacco products are sold in this state.
(r) (f)  “Retail location” means both of the following:
(1) Any building from which cigarettes or tobacco products are sold at retail.
(2) A vending machine.
(g) “Wholesaler” means a wholesaler as defined in Section 30016 of the Revenue and Taxation Code.
(h) “Cigarette” means a cigarette as defined in Section 30003 of the Revenue and Taxation Code.
(i) “License” means a license issued by the board pursuant to this division.
(j) “Licensee” means any person holding a license issued by the board pursuant to this division.
(s) (k)  “Sale” or “sold” means a sale as defined in Section 30006 of the Revenue and Taxation Code.
(t) (l)  “Tobacco products” means tobacco products as defined in subdivision (b) of Section 30121 and subdivision (b) of Section 30131.1 of the Revenue and Taxation Code.
(u) (m)  “Unstamped package of cigarettes” means a package of cigarettes that does not bear a tax stamp as required under Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, including a package of cigarettes that bears a tax stamp of another state or taxing jurisdiction, a package of cigarettes that bears a counterfeit tax stamp, or a stamped or unstamped package of cigarettes that is marked “Not for sale in the United States.”
(v) (n)  “Wholesaler” “Person”  means a wholesaler person  as defined in Section 30016 30010  of the Revenue and Taxation Code.
(o) “Package of cigarettes” means a package as defined in Section 30015 of the Revenue and Taxation Code.
(p) (1) “Control” or “controlling” means possession, direct or indirect, of the power:
(A) To vote 25 percent or more of any class of the voting securities issued by a person.
(B) To direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract (other than a commercial contract for goods or nonmanagement services), or otherwise provided; however, no individual shall be deemed to control a person solely on account of being a director, officer, or employee of such person.
(2) For purposes of subparagraph (B) of this subdivision, a person who, directly or indirectly, owns, controls, holds, with the power to vote, or holds proxies representing 10 percent or more of the then outstanding voting securities issued by another person, is presumed to control such other person.
(3) For purposes of this division, the board may determine whether a person in fact controls another person.
(q) “Law enforcement agency” means a sheriff, a police department, or a city, county, or city and county agency or department designated by the governing body of that agency to enforce this chapter or to enforce local smoking and tobacco ordinances and regulations.
(r) “Brand family” has the same meaning as that term is defined in paragraph (2) of subdivision (a) of Section 30165.1 of the Revenue and Taxation Code.
(s) The amendments made to this section by the act adding this subdivision shall become operative May 1, 2007.

SEC. 4.

 Section 22979.21 is added to the Business and Professions Code, to read:

22979.21.
 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) Submit to the board a list of all tobacco products they manufacture or import.
(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) 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) 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) This section shall become operative May 1, 2007.

SEC. 5.

 Section 22979.22 is added to the Business and Professions Code, to read:

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) 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) 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) 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) 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) Signature of the applicant.
(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) Any other information the board may require.
(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application.
(c) The board shall provide electronic means for applicants to download and submit applications.

SEC. 6.

 Section 22979.23 is added to the Business and Professions Code, to read:

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) 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) 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).

SEC. 7.

 Section 22979.24 is added to the Business and Professions Code, to read:

22979.24.
 (a) Every manufacturer or importer holding a license pursuant to Section 22979.21 shall file a monthly report to the board, in a manner specified by the board, which may include, but is not limited to, electronic media. The monthly report shall include, but is not limited to, the following:
(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) The total wholesale cost of the products.
(b) The board 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) All information and records provided to the board pursuant to subdivision (a) are confidential in nature and shall not be disclosed by the board. Information required under subdivision (a) are not public records under the California Public Records Act, as described in Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code and shall not be open to public inspection.
(d) The amendments made to this section by the act adding this subdivision shall become operative May 1, 2007.

SEC. 8.

 Section 22980.1 of the Business and Professions Code is amended to read:

22980.1.
 (a) A No  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) (1) Except as provided in paragraph (2), a no  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) 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) A No  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) (1)   A retailer No 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) Notwithstanding subdivision (c), a no  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) 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) A No  manufacturer, distributor, wholesaler, or importer shall not  may  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) An No  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  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 13335a  et seq.) for the reporting of ingredients added to cigarettes.
(h)   (1) Failure to comply with the provisions of this section is  shall be  a misdemeanor subject to penalties pursuant to Section 22981.
(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  Web site  to determine a person’s licensing status is presumed to be in compliance with this section.
(i) The amendments that are made to this section by the act adding this subdivision shall become operative May 1, 2007.

SEC. 9.

 Chapter 7 (commencing with Section 22995) of Division 8.6 of the Business and Professions Code is repealed.

SEC. 10.

 Section 14950 of the Health and Safety Code is amended to read:

14950.
 (a) This part shall be known, known  and may be cited, cited  as the California Cigarette Fire Safety and Firefighter Protection Act.
(b) As used in this part, the following terms have the following meanings:
(1) “Board” means the State Board of Equalization.
(1) (2)  “Cigarette” means a cigarette as defined in Section 30003 of the Revenue and Taxation Code, but does not include a little cigar. “Little cigar” means any roll of tobacco wrapped in a leaf of tobacco or any substance containing tobacco and weighing not more than three pounds per thousand.
(2) “Department” means the California Department of Tax and Fee Administration.
(3) “Distributor” means a distributor as defined in Section 30011 of the Revenue and Taxation Code.
(4) “Manufacturer” means any of the following:
(A) An entity that manufactures or otherwise produces cigarettes or causes cigarettes to be manufactured or produced anywhere that the manufacturer intends to be sold in the state, including cigarettes intended to be sold in the United States through an importer.
(B) The first purchaser anywhere that intends to resell in the United States cigarettes manufactured anywhere that the original manufacturer or maker does not intend to be sold in the United States.
(C) An entity that becomes a successor of an entity described in subparagraph (A) or (B).
(5) “Offer to sell” means to offer or agree to sell.
(6) “Package” means package as defined in Section 30015 of the Revenue and Taxation Code.
(7) “Quality control and quality assurance program” means the laboratory procedures implemented to ensure that operator bias, systematic and nonsystematic methodological errors, and equipment-related problems do not affect the results of the testing. This program ensures that the testing repeatability remains within the required repeatability values stated in paragraph (5) of subdivision (a) of Section 14952 for all test trials used to certify cigarettes in accordance with this part.
(8) “Repeatability” means the range of values within which the repeat results of cigarette test trials from a single laboratory will fall 95 percent of the time.
(9) “Retailer” means a person who engages in the sale of cigarettes, but not for the purpose of resale.
(10) “Sale” or “sell” means any transfer, exchange, or barter, in any manner or by any means whatever, or any agreement for these purposes. The giving of cigarettes as samples, prizes, or gifts, and the exchanging of cigarettes for any consideration other than money are considered sales.
(11) “Stamp and meter impression” means stamp and meter impression as defined in Section 30018 of the Revenue and Taxation Code.
(12) “Wholesaler” means a wholesaler as defined in Section 30016 of the Revenue and Taxation Code.

SEC. 11.

 Section 308 of the Penal Code is amended to read:

308.
 (a) (1) (A) Every  (i)  A person who   person, firm, or corporation that  knowingly or under circumstances in which it has knowledge, or should otherwise have grounds for knowledge, sells, gives, or in any way furnishes to another person who is under 21 years of age  the age of 18 years  any tobacco, cigarette, or  cigarette papers, or blunt blunts  wraps, or any other preparation of tobacco, or any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco, tobacco products,  products prepared from tobacco,  or any controlled substance, is subject to either a criminal action for a misdemeanor or to  a civil action brought by a city attorney, a county counsel, or a district attorney, punishable by a fine of two hundred dollars ($200) for the first offense, five hundred dollars ($500) for the second offense, and one thousand dollars ($1,000) for the third offense.
(ii) A firm, corporation, business, retailer, or wholesaler that under the circumstances described in clause (i) sells, gives, or in any way furnishes to another person who is under 21 years of age a product specified in clause (i) is subject to either a criminal action for a misdemeanor or a civil action brought by a city attorney, a county counsel, or a district attorney, punishable by a fine of five hundred dollars ($500) for the first offense, one thousand dollars ($1,000) for the second offense, and five thousand dollars ($5,000) for any subsequent offense.
(iii) This subparagraph does not apply to the sale, giving, or furnishing of any of the products specified in clause (i) to active duty military personnel who are 18 years of age or older. An identification card issued by the United States Armed Forces shall be used as proof of age for this purpose.
(B)  Notwithstanding Section 1464 or any other provision of  law, 25 percent of each civil and criminal penalty collected pursuant to this subdivision shall be paid to the office of the city attorney, county counsel, or district attorney, whoever is responsible for bringing the successful action. action, and 25 percent of each civil and criminal penalty collected pursuant to this subdivision shall be paid to the city or county for the administration and cost of the community service work component provided in subdivision (b). 
(C)  Proof that a defendant, or their  his or her  employee or agent, demanded, was shown, and reasonably relied upon evidence of majority shall be a  defense to any action brought pursuant to this subdivision. Evidence of majority of a person is a facsimile of, of  or a reasonable likeness of, of  a document issued by a federal, state, county, or municipal government, or subdivision or agency thereof, including, but not limited to, a motor vehicle operator’s license, a registration certificate issued under the federal Military Selective Service Act (50 U.S.C. Sec. 3801 et seq.),  Selective Service Act,  or an identification card issued to a member of the Armed Forces.
(D)  For purposes of this section, the person liable for selling or furnishing tobacco products to persons under 21 years of age  minors  by a tobacco vending machine shall be the person authorizing the installation or placement of the tobacco vending machine upon premises they manage or otherwise control he or she manages or otherwise controls  and under circumstances in which they have  he or she has  knowledge, or should otherwise have grounds for knowledge, that the tobacco vending machine will be utilized by persons under 21 years of age. minors. 
(2) For purposes of this section, “blunt wraps” means cigar papers or cigar wrappers of all types that are designed for smoking or ingestion of tobacco products and contain less than 50 percent tobacco.
(b) Every person under the age of 18 years who purchases, receives, or possesses any tobacco, cigarette, or cigarette papers, or any other preparation of tobacco, or any other instrument or paraphernalia that is designed for the smoking of tobacco, products prepared from tobacco, or any controlled substance shall, upon conviction, be punished by a fine of seventy-five dollars ($75) or 30 hours of community service work.
(b) (c)  A Every  person, firm, or corporation that sells, or deals in tobacco or any preparation of tobacco,  thereof,  shall post conspicuously and keep so posted in his, her, or  their place of business at each point of purchase the notice required pursuant to subdivision (b) of Section 22952 of the Business and Professions Code, and a any  person failing to do so shall, upon conviction, be punished by a fine of fifty dollars ($50) for the first offense, one hundred dollars ($100) for the second offense, two hundred fifty dollars ($250) for the third offense, and five hundred dollars ($500) for the fourth offense and each subsequent violation of this provision, or by imprisonment in a county jail not exceeding 30 days.
(c) (d)  For purposes of determining the liability of persons, firms, or corporations controlling franchises or business operations in multiple locations for the second and subsequent violations of this section, each individual franchise or business location shall be deemed a separate entity.
(d) (e)  It is the Legislature’s intent to regulate the subject matter of this section. As a result, a no  city, county, or city and county shall not  adopt any ordinance or regulation inconsistent with this section.
(e) For purposes of this section, “smoking” has the same meaning as in subdivision (c) of Section 22950.5 of the Business and Professions Code.
(f) For purposes of this section, “tobacco products” means a product or device as defined in subdivision (d) of Section 22950.5 of the Business and Professions Code.

SEC. 12.

 Section 830.11 of the Penal Code, as amended by Section 1 of Chapter 190 of the Statutes of 2005, is amended to read:

830.11.
 (a) The following persons are not peace officers but may exercise the powers of arrest of a peace officer as specified in Section 836 and the power to serve warrants as specified in Sections 1523 and 1530 during the course and within the scope of their employment, if they receive a course in the exercise of those powers pursuant to Section 832. The authority and powers of the persons designated under this section shall  extend to any place in the state:
(1) A person  Persons  employed by the Department of Financial Protection and Innovation  Institutions  designated by the Commissioner of Financial Protection and Innovation,  Institutions,  provided that the person’s  primary duty is  of these persons shall be  the enforcement of, and investigations relating to, the provisions of law administered by the Commissioner of Financial Protection and Innovation. Institutions. 
(2) A person  Persons  employed by the Bureau Department  of Real Estate designated by the Real Estate Commissioner, provided that the person’s  primary duty is  of these persons shall be  the enforcement of the laws set forth in Part 1 (commencing with Section 10000) and Part 2 (commencing with Section 11000) of Division 4 of the Business and Professions Code. The Real Estate Commissioner may designate a person  persons  under this section who, section, who  at the time of their designation, is are  assigned to the Special Investigations Unit, internally known as the Crisis Response Team.
(3) A person  Persons  employed by the State Lands Commission designated by the executive officer, provided that the person’s  primary duty is  of these persons shall be  the enforcement of the law relating to the duties of the State Lands Commission.
(4) A person  Persons  employed as an investigator  investigators  of the Investigations Bureau of the Department of Insurance, who is are  designated by the Chief of the Investigations Bureau, provided that the person’s  primary duty is  of these persons shall be  the enforcement of the Insurance Code and other laws relating to persons and businesses, licensed and unlicensed by the Department of Insurance, who are engaged in the business of insurance.
(5) A person  Persons  employed as an investigator or investigator supervisor by the Public Utilities Commission, who is investigators and investigator supervisors of the Consumer Services Division or the Rail Safety and Carrier Division of the Public Utilities Commission who are  designated by the commission’s executive director and approved by the commission, provided that the person’s  primary duty is  of these persons shall be  the enforcement of the law as that duty is set forth in Section 308.5 of the Public Utilities Code.
(6) (A) A person  Persons  employed by the California Department of Tax and Fee Administration, who is State Board of Equalization, Investigations Division, who are  designated by the department’s  board’s executive  director, provided that the person’s  primary duty is  of these persons shall be  the enforcement of laws administered by the California Department of Tax and Fee Administration. State Board of Equalization. 
(B) A person  Persons  designated pursuant to this paragraph is are  not entitled to peace officer retirement benefits.
(7) A person  Persons  employed by the Department of Food and Agriculture and designated by the Secretary of Food and Agriculture as an investigator, investigator supervisor, or investigator manager, investigators, investigator supervisors, and investigator managers,  provided that the person’s  primary duty is  of these persons shall be  enforcement of, and investigations relating to, the Food and Agricultural Code or Division 5 (commencing with Section 12001) of the Business and Professions Code.
(8) The Inspector General and those employees of the Office of the Inspector General designated by the Inspector General, provided that the person’s primary duty is the enforcement of the law relating to the duties of the Office of the Inspector General.
(9) A person employed by the Department of Cannabis Control and designated by the director of the department as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, Division 10 (commencing with Section 26000) of the Business and Professions Code. This section shall apply to only those investigator positions occupied by persons previously designated by the Secretary of the Department of Food and Agriculture as an investigator, investigator supervisor, or investigative manager whose primary duty was to enforce Division 10 (commencing with Section 26000) of the Business and Professions Code.
(b) Notwithstanding any other law, a person  provision of law, persons  designated pursuant to this section may not carry a firearm. firearms. 
(c) A person  Persons  designated pursuant to this section shall be included as a  “peace officer officers  of the state” under paragraph (2) of subdivision (c) of Section 11105 for the purpose of receiving state summary criminal history information and shall be furnished that information on the same basis as other  peace officers of the state  designated in paragraph (2) of subdivision (c) of Section 11105.

SEC. 13.

 Section 830.11 of the Penal Code, as amended by Section 2 of Chapter 190 of the Statutes of 2005, is repealed.

830.11.
 (a) The following persons are not peace officers but may exercise the powers of arrest of a peace officer as specified in Section 836 and the power to serve warrants as specified in Sections 1523 and 1530 during the course and within the scope of their employment, if they receive a course in the exercise of those powers pursuant to Section 832. The authority and powers of the persons designated under this section extend to any place in the state:
(1) A person employed by the Department of Financial Protection and Innovation designated by the Commissioner of Financial Protection and Innovation, provided that the person’s primary duty is the enforcement of, and investigations relating to, the provisions of law administered by the Commissioner of Financial Protection and Innovation.
(2) A person employed by the Bureau of Real Estate designated by the Real Estate Commissioner, provided that the person’s primary duty is the enforcement of the laws set forth in Part 1 (commencing with Section 10000) and Part 2 (commencing with Section 11000) of Division 4 of the Business and Professions Code. The Real Estate Commissioner may designate a person under this section who, at the time of their designation, is assigned to the Special Investigations Unit, internally known as the Crisis Response Team.
(3) A person employed by the State Lands Commission designated by the executive officer, provided that the person’s primary duty is the enforcement of the law relating to the duties of the State Lands Commission.
(4) A person employed as an investigator of the Investigations Bureau of the Department of Insurance, who is designated by the Chief of the Investigations Bureau, provided that the person’s primary duty is the enforcement of the Insurance Code and other laws relating to persons and businesses, licensed and unlicensed by the Department of Insurance, who are engaged in the business of insurance.
(5) A person employed as an investigator or investigator supervisor by the Public Utilities Commission, who is designated by the commission’s executive director and approved by the commission, provided that the person’s primary duty is the enforcement of the law as that duty is set forth in Section 308.5 of the Public Utilities Code.
(6) (A) A person employed by the California Department of Tax and Fee Administration, who is designated by the department’s director, provided that the person’s primary duty is the enforcement of laws administered by the California Department of Tax and Fee Administration.
(B) A person designated pursuant to this paragraph is not entitled to peace officer retirement benefits.
(7) A person employed by the Department of Food and Agriculture and designated by the Secretary of Food and Agriculture as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, the Food and Agricultural Code or Division 5 (commencing with Section 12001) of the Business and Professions Code.
(8) The Inspector General and those employees of the Office of the Inspector General designated by the Inspector General, provided that the person’s primary duty is the enforcement of the law relating to the duties of the Office of the Inspector General.
(9) A person employed by the Department of Cannabis Control and designated by the director of the department as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, Division 10 (commencing with Section 26000) of the Business and Professions Code. This section shall apply to only those investigator positions occupied by persons previously designated by the Secretary of the Department of Food and Agriculture as an investigator, investigator supervisor, or investigative manager whose primary duty was to enforce Division 10 (commencing with Section 26000) of the Business and Professions Code.
(b) Notwithstanding any other law, a person designated pursuant to this section may not carry a firearm.
(c) A person designated pursuant to this section shall be included as a “peace officer of the state” under paragraph (2) of subdivision (c) of Section 11105 for the purpose of receiving state summary criminal history information and shall be furnished that information on the same basis as other peace officers designated in paragraph (2) of subdivision (c) of Section 11105.

SEC. 14.

 Section 30019 of the Revenue and Taxation Code is amended to read:

30019.
 “Importer” means any purchaser for resale in the United States of cigarettes or tobacco products manufactured outside of the United States for the purpose of making a first sale or distribution within the United States.

SEC. 15.

 Section 30142 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 70 of the Statutes of 2006, is amended to read:

30142.
 (a) The board shall fix the amount of the security required of any distributor and may increase or reduce the amount at any time. A minimum security in the amount of one thousand dollars ($1,000) shall be furnished by every distributor that is required to be licensed.
(b) Except as provided in subdivision (d), if a distributor desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, the board shall require a security as follows:
(1) If a distributor elects, under Section 30168, to make payments on a monthly basis, the board shall require a security equal to not less than 70 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.
(2) If a distributor elects, under Section 30168, to make payments on a twice-monthly basis, the board shall require a security equal to not less than 50 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.
(3) If a distributor elects, under Section 30168, to make payments on a weekly basis, the board shall require a security equal to not less than 25 percent of the amount and no more than twice the amount, as fixed by the board, of the distributor’s purchases of stamps and meter register settings for which payment may be deferred.  
(c) The security required by the board pursuant to subdivision (b) may be in the form of any of the following, in the amount required by paragraph (1) or (2) of subdivision (b):
(1) Cash, or a cash equivalent.
(2) A surety bond.
(d) Upon authorization by the board, no additional security shall be required for a distributor that desires to defer payments for stamps or meter register settings, as provided in Article 2 (commencing with Section 30166) of Chapter 3.5, if the distributor’s average monthly purchase of stamps or meter register settings for the previous 12 months does not exceed seventy-two thousand (72,000) stamps or meter register settings and if the distributor meets all of the following:  
(1) Has been licensed under this part for a minimum of five years.  
(2) Has not been delinquent in the filing of any reports or returns required under this part for the preceding three consecutive years.  
(3) Has not been delinquent in the payment of any tax under this part, or for any other tax or fee administered or collected by the board, for the preceding three consecutive years.  
(4) Provides to the board and updates, as necessary, an electronic mail address for the purpose of receiving payment information, including, but not limited to, amounts owing for stamps and meter register settings purchased.  
(5) Any other criteria the board may require.  

SEC. 16.

 Section 30168 of the Revenue and Taxation Code, as amended by Section 3 of Chapter 70 of the Statutes of 2006, is amended to read:

30168.
 (a) Except as provided for in subdivision (c), amounts owing for stamps and meter register settings purchased on the deferred-payment basis shall be due and payable based on the distributor’s election to make the payment pursuant to subdivision (b). Payment shall be made by a remittance payable to the board.
(b) A distributor shall elect to make the payment required by subdivision (a) on either a monthly, a twice-monthly, or a weekly basis. An election made pursuant to this subdivision shall remain in effect for at least one year from the date the election is made. If the board finds that good cause exists for a distributor’s inability to maintain the election for the full year, the board shall authorize the distributor to make a new election, as otherwise authorized by this subdivision, prior to the expiration of the one-year period following the prior election.
(1) If a distributor elects to make the payment required by subdivision (a) on a monthly basis, the distributor shall remit the payment on or before the 25th day of the month following the month in which the stamps and meter register settings were purchased.
(2) If a distributor elects to make the payment required by subdivision (a) on a twice-monthly basis, the distributor shall make two remittances during the month following the month in which the stamps and meter register settings were purchased. The first monthly remittance shall be made on or before the fifth day of the month and shall be equal to either one-half of the total amount of those purchases of stamps and meter register settings that were made during the preceding month or the total amount of those purchases of stamps and meter register settings that were made between the first day and the 15th day of the preceding month, whichever is greater. The second monthly remittance shall be made on or before the 25th day of the month for the remainder of those purchases of stamps and meter register settings that were made in the preceding month.
(3) If a distributor elects to make the payment required by subdivision (a) on a weekly basis, the distributor shall remit the payment on or before Wednesday following the week in which the stamps and meter register settings were approved and released. Every distributor electing to make payment on a weekly basis shall provide to the board and update, as necessary, an electronic mail address for the purpose of receiving payment information, including but not limited to, amounts owing for stamps and meter register settings purchased.  
(c) Amounts owing for stamps and meter register settings purchased on the deferred-payment basis without a security pursuant to subdivision (d) of Section 30142 shall be due and payable on or before Wednesday following the week in which the stamps and meter register settings were purchased. Payment shall be made by a remittance payable to the board.  

SEC. 17.

 Section 30216 of the Revenue and Taxation Code is repealed.

SEC. 18.

 Section 30359 of the Revenue and Taxation Code is repealed.

SEC. 19.

 Section 30435 of the Revenue and Taxation Code is amended to read:

30435.
 (a) An employee of the board, upon presentation of the appropriate identification and credentials, is authorized to enter into, and conduct an inspection of any building, facility, site, or place described in subdivision (b).
(b) Any building, facility, site, or place at which cigarette or tobacco products are sold, produced, or stored, or any building, facility, site, or place for which there is evidence of either the evasion of the taxes imposed under this part, or the failure to comply with the requirements of the Master Settlement Agreement, as defined in subdivision (e) of Section 104556 of the Health and Safety Code, including, but not limited to, Section 30165.1.
(c) Any inspection performed under the authority of this section shall be performed in a reasonable manner and at a reasonable time, taking into consideration the normal business hours of the building, facility, site, or place that is inspected.
(d) Any person that refuses to allow an inspection authorized under this section is subject to the penalty imposed by Section 30471.

SEC. 20.

 Section 30473 of the Revenue and Taxation Code is amended to read:

30473.
 Any person who falsely or fraudulently makes, forges, alters, reuses or counterfeits any stamp or meter impression provided for or authorized under this part, or tampers with any metering machine authorized under this part, or causes or procures to be falsely or fraudulently made, forged, altered, reused, or counterfeited, any such stamp or meter impression or knowingly and willfully utters, publishes, passes, or tenders as genuine any such false, forged, altered, reused, or counterfeited stamp or meter impression, for the purpose of evading the tax imposed by this part, is guilty of a felony and subject to imprisonment for two, three, or four years, or to a fine of not less than one thousand dollars ($1,000) and not more than twenty-five twenty‑five  thousand dollars ($25,000), or to both fine and imprisonment.

SEC. 21.

 Section 30474 of the Revenue and Taxation Code is amended to read:

30474.
 (a) Any person who knowingly possesses, or keeps, stores, or retains for the purpose of sale, or sells or offers to sell, any package of cigarettes to which there is not affixed the stamp or meter impression required to be affixed under this part, when those cigarettes have been obtained from any source whatever, is guilty of a misdemeanor and shall for each offense be fined an amount not to exceed twenty-five twenty‑five  thousand dollars ($25,000), or be imprisoned for a period not to exceed one year in the county jail, or, at the discretion of the court, be subject to both fine and imprisonment in the county jail.
(b) In addition to the fine or sentence, or both, each person convicted under this section shall pay one hundred dollars ($100) for each carton of 200 cigarettes, or portion thereof, if that person knowingly possessed, or kept, stored, or retained for the purpose of sale, or sold or offered for sale in violation of this section, as determined by the court. The court shall direct that 50 percent of the penalty assessed be transmitted to the local prosecuting jurisdiction, to be allocated for costs of prosecution, and 50 percent of the penalty assessed be transmitted to the board. The board may collect the penalty due pursuant to this section in the manner prescribed in Section 30483. State Board of Equalization. 
(c) This section shall does  not apply to a licensed distributor that possesses, keeps, stores, or retains cigarettes before the necessary stamp or meter impression is affixed.

SEC. 22.

 Section 30474.1 of the Revenue and Taxation Code is amended to read:

30474.1.
 (a) Notwithstanding any other provision of law, the sale or possession for sale of counterfeit tobacco products, or the sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, wholesaler, or retailer shall result in the seizure of the product by the board or any law enforcement agency and shall constitute a misdemeanor punishable as follows:
(1) A violation with a total quantity of less than two cartons of cigarettes shall be a misdemeanor punishable by a fine not to exceed five thousand dollars ($5,000), or imprisonment not to exceed one year in a county jail, or both fine and imprisonment, and shall also result in the revocation by the board of the manufacturer, distributor, or wholesale license.
(2) A violation with a quantity of two cartons of cigarettes or more shall be a misdemeanor punishable by a fine not to exceed fifty thousand dollars ($50,000) or imprisonment not to exceed one year in a county jail, or both fine and imprisonment, and shall also result in the revocation by the board of the manufacturer, distributor, or wholesaler license.
(b) A court shall consider a defendant’s ability to pay when imposing fines pursuant to this section.
(c) For the purposes of this section, counterfeit cigarette and tobacco products include cigarette and tobacco products that have false manufacturing labels, false or fraudulent stamps or meter impressions, or a combination thereof.
(d) The board shall seize and destroy any cigarettes or other tobacco products forfeited to the state under this section.

SEC. 23.

 Section 30475 of the Revenue and Taxation Code is amended to read:

30475.
 (a) Any transporter who transports cigarettes or tobacco products upon the highways, roads or streets of this state without having obtained a permit or without having a permit in the transporting vehicle as prescribed by Section 30431 or without having in the transporting vehicle the invoices, bills of lading or delivery tickets for the cigarettes or tobacco products as prescribed by Section 30432 is guilty of a misdemeanor and upon conviction thereof shall be fined not more than one thousand dollars ($1,000) or be imprisoned for not more than one year in the county jail, or be subject to both fine and imprisonment in the discretion of the court.
(b) Any transporter who, with intent to defeat or evade or with intent to aid another to defeat or evade the taxes imposed by this part, at any given time transports 40,000 or more cigarettes or tobacco products with a value of five thousand dollars ($5,000) or more upon the highways, roads or streets of this state without having obtained a permit or without having a permit in the transporting vehicle as prescribed by Section 30431 or without having in the transporting vehicle the invoices, bills of lading or delivery tickets for the cigarettes or tobacco products as prescribed by Section 30432 shall be punished by imprisonment in the county jail for not more than one year, or in the state prison, or by fine of not more than twenty-five twenty‑five  thousand dollars ($25,000), or be subject to both fine and imprisonment in the discretion of the court.
SEC. 24.
 The Legislature finds and declares that Section 7 of this act, which amends Section 22979.24 of the Business and Professions Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to allow for the State Board of Equalization to fully accomplish its goals, it is imperative to protect the interests of those persons submitting information to the board to ensure that any business or trade secrets that are required to be submitted by those persons by this act be protected as confidential information.
SEC. 25.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.