Tobacco and Alcohol Legislation:
Despite an extremely difficult state Budget climate and extensive negotiations to address a $22 billion budget deficit, all of the attempts to increase taxes and fees on tobacco and alcohol products – as well as further limit the sale of the products – were defeated or stalled.
SB 600 (Padilla) - Imposes an additional tax on the distribution of cigarettes at the rate of 75 mills for each cigarette distributed and requires a dealer or wholesaler to file a return with the State Board of Equalization showing the number of cigarettes in his or her possession or under his or her control on that date. Revenues collected as a result of this bill would be allocated to a newly created Health Protection Fund. Similar to AB 89. (Stopped in Committee)
AB 89 (Torlakson) – Imposes an additional excise tax on the distribution of cigarettes at the rate of $0.105 for each cigarette distributed, starting the first day of the first calendar quarter 90 days after the effective date of the bill (TBD). Also requires a dealer or wholesaler to file a return with the State Board of Equalization showing the number of cigarettes in his or her possession or under his or her control on that date. The revenues collected from the additional tax would be deposited in the Tobacco Excise Tax Account. Similar to SB 600. (Stopped in Committee)
SB 602 (Padilla) – Repeals the current restrictions that limits the BOE enforcement actions against retail tobacco license holders, requires enforcement agencies to notify BOE of retailers’ violations of underage sales laws, and strengthens penalties on retailers convicted of furnishing products to people under the age of 18. (Stopped in Committee)
SB 603 (Padilla) – Restricts new tobacco retail licenses for location in over-concentrated areas and within 600 feet of a public elementary or secondary school. Sets a renewal license fee at $100. Also requires the Department of Alcohol and Beverages and the Department of Public Health upon request of the BOE to provide them with information covering tobacco and control laws. (Stopped in Committee)
AB 1019 (Beall) – Requires wholesalers located within the state who distribute alcoholic beverages to retailers for consumption in the state, to pay a $0.10 per drink surcharge and would require the State Board of Equalization to administer and collect this surcharge. The bill would establish the Alcohol-Related Services Fund, to be administered by the State Department of Health Care Services, into which moneys from the imposition of the surcharge would be deposited and would, upon appropriation by the Legislature, require those moneys to be used by the State Department of Health Care Services for specified programs, including programs to prevent the use and abuse of alcoholic beverages and other drugs. (Defeated in Committee)
SB 558 (Desaulnier) – Requires the Department of Alcoholic Beverage Control to impose an additional nickel-a-drink tax on sales of alcoholic beverages. The tax will be computed based on a drink containing 12 ounces of beer, 1.5 ounces of distilled spirits or 5 ounces of wine. (Stopped in Committee)
SB 415 (Oropeza) – Relates to a requirement that the Department of Alcoholic Beverage Control notify the sheriff, chief of police, district attorney, city or county planning agency, and legislative body of an application for a liquor license and prohibits the department from issuing or transferring a license for a minimum time period and authorizes a time period extension. Authorizes the department to extend the time period with which a license may not be issued pending review by any entity receiving such notification. (Vetoed by the Governor)
