Cigarette and tobacco taxes: violation: penalties.

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 and prohibits retailers, manufacturers, distributors, and wholesalers from distributing or selling those cigarette and tobacco products unless they are in compliance with those licensure requirements. The Cigarette and Tobacco Products Tax Law imposes a tax on the distribution of tobacco products and on the distribution of cigarettes, which are paid through the use of stamps or meter impressions that are required to be affixed to each package of cigarettes sold. The Cigarette and Tobacco Products Tax Law requires that certain cigarette and tobacco products be forfeited to the state under specified circumstances, upon seizure by the State Board of Equalization. This bill would subject a person who fails to pay a tax liability in violation of the Cigarette and Tobacco Products Tax Law to suspension of any distributor's license and seizure of any assets related to tobacco distribution. The bill would require the board to hold a hearing on the suspension or seizure and, upon confirmation of the violation, would allow the board to revoke the license and sell the assets, proceeds of which would be deposited into the fund to which a cigarette or tobacco products tax liability is owed, to be available upon appropriation by the Legislature and the General Fund, as specified.  This bill would provide that the provisions of this bill are severable.