Cigarettes and tobacco products.

Existing law, the California Cigarette and Tobacco Products Licensing Act of 2003, provides for the licensure by the State Board of Equalization of manufacturers, distributors, wholesalers, importers, and retailers of cigarette or tobacco products that are engaged in business in California. The act prohibits retailers, manufacturers, distributors, and wholesalers from distributing or selling those cigarette and tobacco products unless they are licensed. The act authorizes the board to suspend or revoke the license of any manufacturer, distributor, wholesaler, importer, or retailer of tobacco products that is in violation of the act's provisions. Violation of the act is a misdemeanor. This bill would, among other things, prohibit the transfer of title or possession of cigarettes or tobacco products without consideration, exchange, or barter if the cigarettes or tobacco products had been purchased for resale under a license issued pursuant to the act and the transfer occurs during the suspension or after revocation of the license. It would also prohibit specified displays of cigarettes or tobacco products. It would require prescribed notices to be posted when a license has been suspended or revoked by the board, and would make violation of these notice posting requirements subject to a civil penalty. By adding a new crime, this bill would impose a state-mandated local program. This bill would incorporate additional changes in Section 22979 of the Business and Professions Code proposed by AB 2496, that would become operative only if AB 2496 and this bill are both chaptered and become operative on or before January 1, 2011, and this bill is chaptered last. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.