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SB-38 Sales and use taxes: consumer designation: all volunteer fire department.(2019-2020)



Current Version: 09/11/20 - Chaptered Compare Versions information image


SECTION 1.

 Section 6018.10 of the Revenue and Taxation Code is amended to read:

6018.10.
 (a) An all volunteer fire department is a consumer, and shall not be considered a retailer within the provisions of this part, of all tangible personal property sold by it, including, but not limited to, hot prepared food products and clothing, if the profits are used solely and exclusively in furtherance of the purposes of the all volunteer fire department.
(b) For purposes of this section, an “all volunteer fire department” means an organization that meets all of the following requirements:
(1) A member shall not be paid a regular salary, but a member may be compensated on an hourly or per incident basis.
(2) The purpose of the organization is to protect the lives, property, and environment within a designated geographical area from fires, disasters, and emergency incidents through education, prevention, training, and emergency response.
(3) The organization is regularly organized for volunteer fire department purposes and qualifies as an exempt organization, either under Section 23701d or 23701f of this code or under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, having official recognition and full or partial support of the government of the county, city, or district in which the volunteer fire department is located, and that has functions having an exclusive connection with the prevention and extinguishing of fires within the area of the county, city, or district extending official recognition for the benefit of the public generally and to lessen the burdens of the entity of government that would otherwise be obligated to furnish that fire protection.
(c) This section shall not apply if an all volunteer fire department, in each of the two preceding calendar years, has gross receipts from the sale of tangible personal property of one hundred thousand dollars ($100,000) or more.
(d) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
SEC. 2.
 For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to the tax expenditure created by the amendment of Section 6018.10 of the Revenue and Taxation Code made by this act, the Legislature finds and declares as follows:
(a) The specific goals, purposes, and objectives of this tax expenditure are all of the following:
(1) To ensure that the entire gross amount of fundraisers continues to stay with all volunteer fire departments and helps provide critically needed equipment and services.
(2) To help all volunteer fire departments through this critical time.
(3) To ensure all volunteer fire departments can afford necessary equipment during fire season.
(b) For the purpose of aiding the Legislature in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a), the California Department of Tax and Fee Administration shall annually estimate the revenue loss associated with the tax expenditure created by this act.
(c)  The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. California Department of Tax and Fee Administration shall report the information described in subdivision (b) to the Legislature before each year beginning on or after January 1, 2023, and before January 1, 2026. The report shall be submitted in compliance with Section 9795 of the Government Code. 
SEC. 3.
 Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.
SEC. 4.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

SECTION 1.

 Division 8.7 (commencing with Section 22995) is added to the Business and Professions Code, to read:

DIVISION 8.7. Prohibition on the Sale of Flavored Tobacco Products

22995.
 For purposes of this division, the following definitions apply:
(a) “Characterizing flavor” means a distinguishable taste or aroma, or both, other than the taste or aroma of tobacco, imparted by a tobacco product or any byproduct produced by the tobacco product. Characterizing flavors include, but are not limited to, tastes or aromas relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A tobacco product shall not be determined to have a characterizing flavor solely because of the use of additives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, as described in the first sentence of this definition, that constitutes a characterizing flavor.
(b) “Constituent” means any ingredient, substance, chemical, or compound, other than tobacco, water, or reconstituted tobacco sheet, that is added by the manufacturer to a tobacco product during the processing, manufacture, or packing of the tobacco product.
(c) “Enforcing agency” means the State Department of Public Health, another state agency, including, but not limited to, the office of the Attorney General, or a local law enforcement agency, including, but not limited to, a city attorney, district attorney, or county counsel.
(d) “Flavored tobacco product” means any tobacco product that contains a constituent that imparts a characterizing flavor.
(e) “Labeling” means written, printed, pictorial, or graphic matter upon a tobacco product or any of its packaging.
(f) “Packaging” means a pack, box, carton, or container of any kind, or, if no other container, any wrapping, including cellophane, in which a tobacco product is sold or offered for sale to a consumer.
(g) “Retail location” means both of the following:
(1) A building from which tobacco products are sold at retail.
(2) A vending machine.
(h) “Sale” or “sold” means a sale as defined in Section 30006 of the Revenue and Taxation Code.
(i) “Tobacco product” means a tobacco product as defined in paragraph 8 of subdivision (a) of Section 104495 of the Health and Safety Code, as that provision may be amended from time to time.
(j) “Tobacco retailer” means a person who engages in this state in the sale of tobacco products directly to the public from a retail location. “Tobacco retailer” includes a person who operates vending machines from which tobacco products are sold in this state.
22996.
 (a) A tobacco retailer, or any of the tobacco retailer’s agents or employees, shall not sell, offer for sale, or possess with the intent to sell or offer for sale, a flavored tobacco product.
(b) There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a manufacturer or any of the manufacturer’s agents or employees, in the course of his or her agency or employment, has made a statement or claim directed to consumers or to the public that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, images, or all, on the product’s labeling or packaging that are used to explicitly or implicitly communicate that the tobacco product has a characterizing flavor.
22997.
 An enforcing agency may assess civil penalties in the amounts set forth in subdivision (a) of Section 22958 for a violation of this division.
22998.
 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.