Cigarette or tobacco product retailers: new retail locations and sale of nitrous oxide.

Existing law, upon the assessment of a civil penalty for the 3rd, 4th, or 5th violation, requires the department to notify the California Department of Tax and Fee Administration (CDTFA), and requires the CDTFA to assess civil penalties and suspend or revoke a license issued under the Cigarette and Tobacco Products Licensing Act of 2003.

This bill, effective July 1, 2027, would prohibit a new retail location for a retailer of cigarettes or tobacco products from being located within a 600-foot radius of a school or a daycare center unless the local jurisdiction specifies a radius greater than 600 feet. The bill would also prohibit a retailer of cigarettes or tobacco products from possessing, storing, owning, or selling nitrous oxide or paraphernalia relating to the consumption of nitrous oxide. The bill would authorize an enforcement agency to assess civil penalties for a violation of those provisions. The bill would authorize the CDTFA to then assess a civil penalty and suspend or revoke a license for a violation of those provisions. The bill would exempt a grocery store, as defined, from the bill's provisions and would define other terms relating to the bill's provisions.

The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to issue a license to a retailer to engage in the sale of cigarettes or tobacco products upon receipt of a completed application and payment of certain fees, unless an exception applies.

This bill, on and after July 1, 2027, would include among those exceptions an application for a new license for a retail location within 600 feet of a school or daycare center or a greater radius established by the local jurisdiction, as specified.

The California Constitution provides for the establishment of the State Board of Equalization, which, before July 1, 2017, had primary responsibility for most of the state's duties, powers, and responsibilities regarding the administration of taxes and fees. Existing law, on July 1, 2017, transferred to the CDTFA various duties, powers, and responsibilities of the State Board of Equalization, including administration of the STAKE Act, as specified.

This bill would change references in the provisions of the STAKE Act amended by this bill from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" to reflect the transfer of the board's duties, powers, and responsibilities to the CDTFA.