20250SB__131495AMD INTRODUCED 2026-02-20 AMENDED_SENATE 2026-04-06 AMENDED_SENATE 2026-04-27 AMENDED_SENATE 2026-05-14 AMENDED_ASSEMBLY 2026-07-01 2025 SB AMD Introduced by Senator Menjivar (Coauthors: Senators Rubio and Weber Pierson)</caml:AuthorText>"?> (Coauthor: Senator Weber Pierson) LEAD_AUTHOR SENATE Menjivar <caml:Contribution>COAUTHOR</caml:Contribution><caml:House>SENATE</caml:House><caml:Name>Rubio</caml:Name></caml:Legislator>"?> <caml:Contribution>COAUTHOR</caml:Contribution><caml:House>SENATE</caml:House><caml:Name>Weber Pierson</caml:Name></caml:Legislator>"?> COAUTHOR SENATE Weber Pierson

An act to amend Sections and 22973.1 of, and to add

Section to, the Business and Professions Code, relating to cigarettes and tobacco products. cigarettes and tobacco products Cigarette or tobacco product retailers: new retail locations and sale of nitrous oxide. The Stop Tobacco Access to Kids Enforcement (STAKE) Act requires the State Department of Public Health to establish and develop a program to reduce the availability of tobacco products to persons under years of age through specified enforcement activities.

In addition to the primary enforcement responsibility assumed by the department, existing law authorizes other state and local governmental agencies to conduct inspections and assess penalties for violations of the act, as specified, and encourages state and local enforcement agencies to share the results of inspections and coordinate with the department when enforcing the act.

In this regard, existing law authorizes an enforcing agency to assess specified civil penalties against any person, firm, or corporation that sells, gives, or in any way furnishes to another person who is under years of age any tobacco, cigarettes, or cigarette papers. 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 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 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 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. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. This act shall be known, and may be cited, as the Youth Over Smoke Act.

SEC. 2.

Section of the Business and Professions Code is amended to read: 22958. (

a) An enforcing agency may assess civil penalties against any person, firm, or corporation that sells, gives, or in any way furnishes to another person who is under years of age any tobacco, cigarette, cigarette papers, any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco, tobacco products, or any controlled substance, according to the following schedule:

(1) A civil penalty of one thousand dollars ($1,000) to one thousand five hundred dollars ($1,500) for the first violation.

(2) A civil penalty of two thousand dollars ($2,000) to three thousand dollars ($3,000) for the second violation at the same location within a five-year period.

(3) A civil penalty of five thousand dollars ($5,000) to ten thousand dollars ($10,000) for the third violation at the same location within a five-year period.

(4) A civil penalty of ten thousand dollars ($10,000) to twenty thousand dollars ($20,000) for a fourth violation within a five-year period.

(5) A civil penalty of at least twenty thousand dollars ($20,000) for five or more violations within a five-year period. (b)

(1) In addition to the civil penalties described in subdivision (a), upon the assessment of a civil penalty for the third, fourth, or fifth violation, the department, within days of the date of service of the final administrative adjudication on the parties or payment of the civil penalty for an uncontested violation, shall notify the California Department of Tax and Fee Administration of the violation. The State Board of Equalization shall then assess a civil penalty of two hundred fifty dollars ($250) and suspend or revoke a license issued pursuant to

Chapter 2 (commencing with

Section 22971.7) of Division 8.6 in accordance with the following schedule: (

A) A 45-day suspension of the license for a third violation at the same location within a five-year period. (

B) A 90-day suspension of the license for a fourth violation at the same location within a five-year period. (

C) Revocation of the license for a fifth violation at the same location within a five-year period.

(2) The provisions of

Chapter 4 (commencing with

Section 55121) of Part of Division of the Revenue and Taxation Code apply with respect to the collection of the penalty imposed by the State Board of Equalization pursuant to paragraph (1). (c)

(1) For each suspension or revocation pursuant to subdivision (b), the civil penalty of two hundred fifty dollars ($250) assessed pursuant to that subdivision, notwithstanding

Section 22953, shall be deposited into the Cigarette and Tobacco Products Compliance Fund established pursuant to

Section 22990. Moneys from that civil penalty deposited into this fund shall be made available to the State Board of Equalization, upon appropriation by the Legislature, for the purposes of meeting its duties under subdivision (b).

(2) The department shall, upon request, provide to the California Department of Tax and Fee Administration information concerning any person, firm, or corporation that has been assessed a civil penalty for violation of the STAKE Act pursuant to this

section when the department has notified the State Board of Equalization of the violation. (

d) The enforcing agency shall assess penalties pursuant to the

schedule set forth in subdivision (

a) against a person, firm, or corporation that sells, offers for sale, or distributes tobacco products from a cigarette or tobacco products vending machine, or a person, firm, or corporation that leases, furnishes, or services these machines in violation of

Section 22960. (

e) An enforcing agency may assess civil penalties against a person, firm, or corporation that sells or deals in tobacco or any preparation thereof, and fails to post conspicuously and keep posted in the place of business at each point of purchase the notice required pursuant to subdivision (

b) of

Section 22952. The civil penalty shall be in the amount of two hundred dollars ($200) for the first offense and five hundred dollars ($500) for each additional violation. (

f) An enforcing agency shall assess penalties in accordance with the

schedule set forth in subdivision (

a) against a person, firm, or corporation that advertises or causes to be advertised a tobacco product on an outdoor billboard in violation of

Section 22961. (

g) An enforcing agency shall assess penalties in accordance with the

schedule set forth in subdivision (

a) and provide notice in accordance with subdivision (

b) against a person, firm, or corporation in violation of

Section 22965. The California Department of Tax and Fee Administration shall then assess a civil penalty and suspend or revoke a license pursuant to subdivision (

b) for violations of

Section 22965. (

h) If a civil penalty has been assessed pursuant to this

section against a person, firm, or corporation for a single, specific violation of this division, the person, firm, or corporation shall not be prosecuted under

Section of the Penal Code for a violation based on the same facts or specific incident for which the civil penalty was assessed. If a person, firm, or corporation has been prosecuted for a single, specific violation of

Section of the Penal Code, the person, firm, or corporation shall not be assessed a civil penalty under this

section based on the same facts or specific incident upon which the prosecution under

Section of the Penal Code was based. (i)

(1) In the case of a corporation or business with more than one retail location, to determine the number of accumulated violations for purposes of the penalty

schedule set forth in subdivision (a), violations of this division by one retail location shall not be accumulated against other retail locations of that same corporation or business.

(2) In the case of a retail location that operates pursuant to a franchise as defined in

Section 20001, violations of this division accumulated and assessed against a prior owner of a single franchise location shall not be accumulated against a new owner of the same single franchise location for purposes of the penalty

schedule set forth in subdivision (a). (

j) Proceedings under this

section shall be conducted pursuant to

Section of the Health and Safety Code, except in cases where a civil penalty is assessed by an enforcing agency other than the department, in which case proceedings shall be conducted pursuant to the procedures of that agency that are consistent with

Section of the Health and Safety Code.

SEC. 3.

Section is added to the Business and Professions Code , to read: 22965. (

a) For purposes of this section, the following

definitions apply: (1)<xhtml:span class="EnSpace"/>“Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in

part in tobacco or any substance containing tobacco and weighing more than three pounds per thousand.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Cigar lounge” means any retailer whose retail location has percent or more of its net floor area devoted to the sale or onsite consumption of cigars.</xhtml:p>"?> (3)</xhtml:p>"?> (1) “Daycare center” means a facility, other than a family daycare home, serving infant, toddler, preschool, or schoolage children licensed by the State Department of Social Services pursuant to

Chapter 3.5 (commencing with

Section 1596.90) of Division of the Health and Safety Code. (4)</xhtml:p>"?> (2) “License” shall have the same meaning as provided in

Section 22971. (5)<xhtml:span class="EnSpace"/>“Net floor area” means the sales area or customer area of a retailer and includes register areas, bar areas, waiting areas, and display areas that may not be directly accessible to customers, but does not include hallways, offices, restrooms, courtyards, break areas, the forecourt of a service station, or a kiosk of a service station.</xhtml:p>"?> (6)</xhtml:p>"?> (3) “Nitrous oxide” shall have the same meaning as provided in

Section 381c of the Penal Code. (7)</xhtml:p>"?> (4) “Retailer” shall have the same meaning as provided in

Section 22971. (8)</xhtml:p>"?> (5) “Retail location” shall have the same meaning as provided in

Section 22971, except that a retailer does not include a grocery store, as defined in paragraph (3) of subdivision (

e) of

Section of the Health and Safety Code. (9)</xhtml:p>"?> (6) “School” means, as evidenced by the State Department of Education’s school directory, either of the following: (

A) A public school instructing children in kindergarten or any of grades to 12, inclusive, as authorized by the State Department of Education. (

B) A private school instructing children in kindergarten or any of grades to 12, inclusive, that has filed a verification of private school affidavit with the State Department of Education pursuant to

Section of the Education Code, excluding any private school in which education is primarily conducted in a private home. (10)<xhtml:span class="EnSpace"/>“Smoke shop” means any retailer whose retail location has percent or more of its net floor area devoted to the sale of tobacco products, substances intended for smoking or inhaling, or smoking or inhaling accessories, including, but not limited to, pipes, vaporizing devices, or other smoking or inhaling paraphernalia. Smoke shop does not include a cigar lounge licensed pursuant to Division 8.6 (commencing with

Section 22970) or a cannabis retailer licensed pursuant to Division 10 (commencing with

Section 26000).</xhtml:p>"?> (

b) Effective July 1, 2027, a new retail location for a retailer shall not be located within a 600-foot radius of a school or daycare center unless the local jurisdiction specifies a radius greater than feet. The distance specified in this subdivision shall be measured in the same manner as provided in subdivision (

c) of

Section 11362.768 of the Health and Safety Code, unless otherwise provided by law. (c)<xhtml:span class="EnSpace"/>A smoke shop may only engage in the retail sale of tobacco products directly to the public between the hours of 6:00 a.m. and 10:00 p.m.</xhtml:p>"?> (d)</xhtml:p>"?> (

c) A retailer shall not possess, store, own, or sell nitrous oxide, including products derived from or containing nitrous oxide, or paraphernalia related to the consumption of nitrous oxide. (e)<xhtml:span class="EnSpace"/>This

section sets forth minimum state restrictions with respect to the operation of smoke shops and does not preempt or otherwise prohibit the adoption of a local standard that imposes more restrictive requirements on the operation of smoke shops. A local standard that imposes more restrictive requirements on the operation of smoke shops shall control in the event of any inconsistency between this

section and a local standard. </xhtml:p>"?>

SEC.

Section 22973.1 of the Business and Professions Code is amended to read: 22973.1. (

a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in

Section 22973, unless any of the following apply:

(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.

(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless: (

A) It has been more than five years since a previous license for the retail location was revoked. (

B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction. For purposes of this section, an “arm’s length transaction” is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.

A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at “arm’s length.”

(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to

Section or of the Revenue and Taxation Code.

(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code. (5)<xhtml:span class="EnSpace"/>The retailer is a smoke shop, as defined in

Section 22965, and is located within feet of a school or daycare center, or within the distance set by the local jurisdiction pursuant to that section.</xhtml:p>"?>

(5) On and after July 1, 2027, the application is for a new license for a retail location within feet of a school or daycare center or within the distance set by the local jurisdiction pursuant to

Section 22965. This paragraph does not apply to either of the following: (

A) The renewal of a license for an existing retailer. (

B) A new license or the renewal of a license for a grocery store, as defined in paragraph (3) of subdivision (

e) of

Section of the Health and Safety Code. (b)

(1) Any retailer who is denied a license may petition for a redetermination of the board’s denial of the license within days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.

(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.

(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least days’ notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.

(4) The order or decision of the board upon a petition for redetermination becomes final days after mailing of notice thereof.

SEC. 5. 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.