BILL NUMBER: AB 640	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 20, 2013

   An act to amend Section  22972   22963 
of the Business and Professions Code, relating to cigarettes and
tobacco products.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 640, as amended, Hall. Cigarettes and tobacco products:
 retailers: licenses.   identification
requirements.  
   Existing law prohibits the sale, distribution, or nonsale
distribution of tobacco products directly or indirectly to any person
under 18 years of age. A violation of these provisions may result in
a criminal action or an assessment of civil penalties. Existing law
requires a person selling or distributing, or engaging in the nonsale
distribution of, tobacco products directly to a consumer in the
state through the United States Postal Service or package delivery
service to verify that the purchaser or recipient of the product is
18 years of age or older. Under existing law, if the seller,
distributor, or nonsale distributor is unable to verify that the
purchaser or recipient is 18 years of age or older, he or she is
required to require the purchaser or recipient to submit an
age-verification kit, which includes a copy of a valid form of
government identification, as specified.  
   This bill would provide that, for the purposes of these
provisions, if a customer or recipient provides an identification
card issued by the United States Armed Forces as proof of majority
and the identification card lacks a physical description, but
includes date of birth and a photo, further proof of majority is not
required.  
   The California Cigarette and Tobacco Products Licensing Act of
2003 requires a retailer to have and maintain a license from the
State Board of Equalization to engage in the sale of cigarette and
tobacco products in California.  
   This bill would make a technical, nonsubstantive change in those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22963 of the  
Business and Professions Code  is amended to read: 
   22963.  (a) The sale, distribution, or nonsale distribution of
tobacco products directly or indirectly to any person under 
the age of  18 years  of age  through the United
States Postal Service or through any other public or private postal
or package delivery service at locations, including, but not limited
to, public mailboxes and mailbox stores, is prohibited.
   (b) Any person selling or distributing, or engaging in the nonsale
distribution of, tobacco products directly to a consumer in the
state through the United States Postal Service or by any other public
or private postal or package delivery service, including orders
placed by mail, telephone, facsimile transmission, or the Internet,
shall comply with the following provisions:
   (1) (A) Before enrolling a person as a customer, or distributing
or selling, or engaging in the nonsale distribution of, the tobacco
product through any of these means, the distributor or seller shall
verify that the purchaser or recipient of the product is 18 years of
age or older. The distributor or seller shall attempt to match the
name, address, and date of birth provided by the customer to
information contained in records in a database of individuals whose
age has been verified to be 18 years  of age  or older by
reference to an appropriate database of government records kept by
the distributor, a direct marketing firm, or any other entity. In the
case of a sale, the distributor or seller shall also verify that the
billing address on the check or credit card offered for payment by
the purchaser matches the address listed in the database.
   (B) If the seller, distributor, or nonsale  distributor,
  distributor  is unable to verify that the
purchaser or recipient is 18 years of age or older pursuant to
subparagraph (A), he or she shall require the customer or recipient
to submit an age-verification kit consisting of an attestation signed
by the customer or recipient that he or she is 18 years of age or
older and a copy of a valid form of government identification. For
the purposes of this section, a valid form of government
identification includes a driver's license, state identification
card,  passport,   a valid passport issued by
the United States or by a foreign government,  an official
naturalization or immigration document,  such as 
 including  an alien registration receipt card (commonly
known as a "green card") or an immigrant visa, or military
identification. In the  event that a customer or recipient
provides an identification card issued by the United States Armed
Forces as proof of majority and the identification card lacks a
physical description, but includes date of birth and a photo, further
proof of majority shall not be required. In the  case of a
sale, the distributor or seller shall also verify that the billing
address on the check or credit card provided by the consumer matches
the address listed in the form of government identification.
   (2) In the case of a sale, the distributor or seller shall impose
a two-carton minimum on each order of cigarettes, and shall require
payment for the purchase of any tobacco product to be made by
personal check of the purchaser or the purchaser's credit card. No
money order or cash payment shall be received or permitted. The
distributor or seller shall submit to each credit card acquiring
company with which it has credit card sales identification
information in an appropriate form and format so that the words
"tobacco product" may be printed in the purchaser's credit card
statement when a purchase of a tobacco product is made by credit card
payment.
   (3) In the case of a sale, the distributor or seller shall make a
telephone call after 5 p.m. to the purchaser confirming the order
prior to shipping the tobacco products. The telephone call may be a
person-to-person call or a recorded message. The distributor or
seller is not required to speak directly with a person and may leave
a message on an answering machine or by voice mail.
   (4) The nonsale distributor shall deliver the tobacco product to
the recipient's verified mailing address, or in the case of a sale,
the seller or distributor shall deliver the tobacco product to the
purchaser's verified billing address on the check or credit card used
for payment. No delivery described under this section shall be
permitted to any post office box.
   (c) Notwithstanding subdivisions (a) and (b), if a seller,
distributor, or nonsale distributor, complies with all of the
requirements of this section and a minor obtains a tobacco product by
any of the means described in subdivision (b), the seller,
distributor, or nonsale distributor is not in violation of this
section.
   (d) For the purposes of the enforcement of this section pursuant
to Section 22958, the acts of the United States Postal Service or
other common carrier when engaged in the business of transporting and
delivering packages for others, and the acts of a person, whether
compensated or not, who transports or delivers a package for another
person without any reason to know of the package's contents, are not
unlawful and are not subject to civil penalties.
   (e) (1) (A) For the purposes of this section, a "distributor" is
any person or entity, within or outside the state, who agrees to
distribute tobacco products to a customer or recipient within the
state. The United States Postal Service or any other public or
private postal or package delivery service are not distributors
within the meaning of this section.
   (B) A "nonsale distributor" is any person inside or outside of
this state who, directly or indirectly, knowingly provides tobacco
products to any person in this state as part of a nonsale
transaction. "Nonsale distributor" includes the person or entity who
provides the tobacco product for delivery and the person or entity
who delivers the product to the recipient as part of a nonsale
transaction.
   (C) "Nonsale distribution" means to give smokeless tobacco or
cigarettes to the general public at no cost, or at nominal cost, or
to give coupons, coupon offers, gift certificates, gift cards, or
other similar offers, or rebate offers for smokeless tobacco or
cigarettes to the general public at no cost or at nominal cost.
Distribution of tobacco products, coupons, coupon offers, gift
certificates, gift cards, or other similar offers, or rebate offers
in connection with the sale of another item, including tobacco
products, cigarette lighters, magazines, or newspapers shall not
constitute nonsale distribution.
   (2) For the purpose of this section, a "seller" is any person or
entity, within or outside the state, who agrees to sell tobacco
products to a customer within the state. The United States Postal
Service or any other public or private postal or package delivery
service are not sellers within the meaning of this section.
   (3) For the purpose of this section, a "carton" is a package or
container that contains 200 cigarettes.
   (f) A district attorney,  a  city attorney, or the
Attorney General may assess civil penalties against any person, firm,
corporation, or other entity that violates this section, according
to the following schedule:
   (1) A civil penalty of not less than one thousand dollars ($1,000)
and not more than two thousand dollars ($2,000) for the first
violation.
   (2) A civil penalty of not less than two thousand five hundred
dollars ($2,500) and not more than three thousand five hundred
dollars ($3,500) for the second violation.
   (3) A civil penalty of not less than four thousand dollars
($4,000) and not more than five thousand dollars ($5,000) for the
third violation within a five-year period.
   (4) A civil penalty of not less than five thousand five hundred
dollars ($5,500) and not more than six thousand five hundred dollars
($6,500) for the fourth violation within a five-year period.
   (5) A civil penalty of ten thousand dollars ($10,000) for a fifth
or subsequent violation within a five-year period. 
  SECTION 1.    Section 22972 of the Business and
Professions Code is amended to read:
   22972.  (a) Commencing June 30, 2004, a retailer shall have in
place and maintain a license to engage in the sale of cigarettes or
tobacco products. A retailer that owns or controls more than one
retail location shall obtain a separate license for each retail
location, but may submit a single application for those licenses.
   (b) The retailer shall conspicuously display the license at each
retail location in a manner that is visible to the public.
   (c) A license is not assignable or transferable. A person who
obtains a license as a retailer who ceases to do business as
specified in the license, or who never commenced business, or whose
license is suspended or revoked, shall immediately surrender the
license to the board.
   (d) A license shall be valid for a 12-month period, and shall be
renewed annually.