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<ns0:Id>20250AB__095798AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-04-28</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ortega</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Assembly Members Addis, Connolly, and Garcia)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthors: Senators Becker and Rubio)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ortega</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Addis</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Connolly</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Garcia</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Becker</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Rubio</ns0:Name>
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<ns0:Title> An act to amend Section 22973.1 of, and to add Article 26 (commencing with 4428) to Chapter 9 of Division 2 of, the Business and Professions Code, relating to cigarette and tobacco products. </ns0:Title>
<ns0:RelatingClause>cigarette and tobacco products</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Cigarette and tobacco products: retail sale: pharmacies.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy, and makes a violation of the Pharmacy Law a misdemeanor.</html:p>
<html:p>This bill would prohibit a pharmacy from engaging in the retail sale of cigarettes or tobacco products. Because a violation of this provision would be a crime, the bill would impose a state-mandated local program. </html:p>
<html:p>Existing law, the Cigarette and Tobacco Products Licensing Act of 2023, requires a retailer to hold a license from the California Department of Tax and Fee Administration to engage in the sale of cigarettes or tobacco products for each retail location. Existing law requires the department to issue a license to a retailer upon receipt of a completed application and payment of required fees, unless certain
circumstances apply.</html:p>
<html:p>This bill would prohibit the department from issuing a license to a retailer if the retailer is a pharmacy or the application is for a retail location that contains a pharmacy.</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_799DE523-2978-4440-9DCA-50A00A8EBE9D">
<ns0:Num>SECTION 1.</ns0:Num>
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Article 26 (commencing with Section 4428) is added to Chapter 9 of Division 2 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_FB9A6A0E-4F64-41B9-BF47-3EE5640FE8B4" type="ARTICLE">
<ns0:Num>26.</ns0:Num>
<ns0:LawHeadingVersion id="id_207BAE6B-D1BB-44E2-AA09-E60D8F50DD29">
<ns0:LawHeadingText>Sale of Cigarettes or Tobacco Products</ns0:LawHeadingText>
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<ns0:LawSection id="id_1ABF432F-8B35-4FE1-93D2-5109DE2C32CE">
<ns0:Num>4428.</ns0:Num>
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<ns0:Content>
<html:p>A pharmacy shall not engage in the retail sale of cigarettes or tobacco products, as those terms are defined in Section 22971. </html:p>
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</ns0:LawSection>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 22973.1 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_3F1A2A48-DA8A-4F4A-9591-7344F7020B7C">
<ns0:Num>22973.1.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
It has been more than five years since a previous license for the retail location was revoked.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The retailer is a pharmacy licensed pursuant to the Pharmacy Law (Chapter 9 (commencing with Section 4000) of Division 2).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The application is for a license or renewal of a license for a retail location that contains a pharmacy licensed pursuant to the Pharmacy Law (Chapter 9 (commencing with Section 4000) of Division 2).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Any retailer who is denied a license may petition for a redetermination of the board’s denial of the license within 30 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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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 any time prior to the date on which the board issues its order or decision upon the petition for redetermination.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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 10 days’ notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of the notice thereof.
</html:p>
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<ns0:BillSection id="id_6B3B25DB-0A18-449F-BDDE-4CC6D2D3A5C0">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
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