2005 California Business and Professions Code Sections 22979-22979.7 AND IMPORTERS

22979.  (a) Commencing on January 1, 2004, every manufacturer and
every importer, as defined in subdivision (b) of Section 22971, shall
obtain and maintain a license to engage in the sale of cigarettes.
In order to be eligible for obtaining and maintaining a license under
this division, a manufacturer or importer shall do all of the
following in the manner specified by the board:
   (1) Submit to the board a list of all brand families that they
manufacture or import.
   (2) Update the list of all brand families that they manufacture or
import whenever a new or additional brand is manufactured or
imported, or a listed brand is no longer manufactured or imported.
   (3) Consent to jurisdiction of the California courts for the
purpose of enforcement of this division and appoint a registered
agent for service of process in this state and identify the
registered agent to the board.
   (b) In order to be eligible for obtaining and maintaining a
license under this division, a manufacturer or importer that is a
"tobacco product manufacturer" in subdivision (i) of Section 104556
of the Health and Safety Code, shall do all of the following in the
manner specified by the board:
   (1) Certify to the board that it is a "participating manufacturer"
as defined in subsection II(jj) of the "Master Settlement Agreement"
(MSA), or is in full compliance with paragraph (2) of subdivision
(a) of Section 104557 of the Health and Safety Code.  Any person who
makes a certification pursuant to this subdivision that asserts the
truth of any material matter that he or she knows to be false is
guilty of a misdemeanor punishable by imprisonment of up to one year
in the county jail, or a fine of not more than one thousand dollars
($1,000), or both the imprisonment and the fine.
   (2) Submit to the board a list of all brand families that fit
under the category applicable to the manufacturer or importer, in
accordance with the following:
   (A) Brand families that are to be counted, in the unit volume and
market shares determined pursuant to subsections II(z) and II(mm) of
the MSA and Exhibit E thereto, in calculating the manufacturer's
annual payments under the MSA.
   (B) Brand families that are to be counted in calculating the
manufacturer's escrow deposits under paragraph (2) of subdivision (a)
of Section 104557 of the Health and Safety Code.
   (C) The manufacturer or importer shall update the list whenever a
new or additional brand is manufactured or imported or a listed brand
is no longer manufactured or imported.
   (c) The board may not grant or permit the maintenance of a license
to any manufacturer or an importer of cigarettes that does not
affirmatively certify, both at the time the license is granted and
annually thereafter, that all packages of cigarettes manufactured or
imported by that person and distributed in this state fully comply
with subdivision (b) of Section 30163 of the Revenue and Taxation
Code, and that the cigarettes contained in those packages are the
subject of filed reports that fully comply with all requirements of
the federal Cigarette Labeling and Advertising Act (15 U.S.C.  Sec.
1331 et seq.) for the reporting of ingredients added to cigarettes.
For purposes of the federal Cigarette Labeling and Advertising Act
requirement, cigars weighing three pounds or less per 1,000 are
excluded from the definition of cigarette.
   (d) A license issued to a manufacturer or an importer under this
division is only valid with respect to the manufacturer or importer
designated on the license and may not be transferred or assigned to
another manufacturer or importer.
   (e) Any manufacturer or importer that is issued a license under
this division that does not commence business in the manner specified
or designated in the license, ceases to do business in the manner
specified or designated in the license, or is notified that the
license is suspended or revoked, shall immediately surrender that
license to the board.
   (f) (1) Any manufacturer or any importer 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 manufacturer or that
importer 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 manufacturer or the importer has so requested in the
petition, shall grant an oral hearing and shall give the manufacturer
or the importer 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.
   (4) The order or decision of the board upon a petition for
redetermination becomes final 30 days after mailing of notice
thereof.
   (5) Any notice required by this subdivision shall be served
personally or by mail.  If by mail, the notice shall be placed in a
sealed envelope, with postage paid, addressed to the manufacturer or
the importer at the address as it appears in the records of the
board.  The giving of notice shall be deemed complete at the time of
deposit of the notice in the United States Post Office, or a mailbox,
subpost office, substation or mail chute or other facility regularly
maintained or provided by the United States Postal Service, without
extension of time for any reason.  In lieu of mailing, a notice may
be served personally by delivering to the person to be served and
service shall be deemed complete at the time of the delivery.
Personal service to a corporation may be made by delivery of a notice
to any person designated in the Code of Civil Procedure to be served
for the corporation with summons and complaint in a civil action.
22979.1.  (a) An application for a license by a manufacturer or by
an importer shall be on a form prescribed by the board and shall
include the following:
   (1) The name, address, and telephone number of the applicant.  The
business name, address, and telephone number of the corporate
offices.  Citations issued to licensees shall be forwarded to all
addressees on the license.
   (2) License number for any other valid licenses or permits issued
by the board.
   (3) Signature of the applicant under oath to verify application
information.
   (4) The name, address, and telephone number of the person
designated by the manufacturer or the importer as its agent for
receipt of service of process in this state.
   (5) Any other information the board may require.
   (b) The board may conduct an inquiry to determine whether the
applicant complies with the provisions of this division.
   (c) The board shall provide electronic means for applicants to
download and submit applications.
22979.2.  (a) On or before January 1, 2004, every manufacturer and
every importer shall pay to the board an administration fee. The
amount of the administration fee shall be one cent ($0.01) per
package of cigarettes (1) manufactured or imported by the
manufacturer or the importer and (2) shipped into this state during
the 2001 calendar year as reported to the board. The board shall
notify each manufacturer and each importer of the amount due under
this section.
   (b) This section shall apply to every manufacturer and every
importer required to be licensed pursuant to Section 22979. All
manufacturers and all importers that may become eligible for
licensure on or after December 1, 2003, shall be notified by the
board of the appropriate fee due and shall pay that fee within 90
days of notification.
   (c) All manufacturers and all importers that begin operations in
the state after enactment of this division shall be charged a fee
commensurate with their respective market share of (1) cigarettes
manufactured or imported by the manufacturer or the importer and (2)
sold in this state during the next calendar year as estimated by the
board. The fee shall be at an amount not less than that paid pursuant
to subdivision (a) by the smallest manufacturer, but may not be more
than that paid by the eighth largest manufacturer.
   (d) The board shall administer this fee in accordance with the Fee
Collection Procedures Law, Part 30 (commencing with Section 55001)
of Division 2 of the Revenue and Taxation Code.
22979.3.  The board shall, upon request, provide to the State
Department of Health Services, the office of the Attorney General, a
law enforcement agency, and any agency authorized to enforce local
tobacco control ordinances, access to the board's database of
licenses issued to manufacturers and importers for locations within
the jurisdiction of that agency or law enforcement agency.  The
agencies authorized by this section to access the board's database
shall only access and use the board's database for purposes of
enforcing tobacco control laws and shall adhere to all state laws,
policies, and regulations pertaining to the protection of personal
information and individual privacy.
22979.4.  All importers shall retain purchase records that meet the
requirements set forth in Section 22979.5 for all cigarettes or
tobacco products purchased and other records required by the board.
The records shall be maintained for a period of one year from the
date of purchase on the importer's premises identified in the
license, and thereafter, the records shall be made available for
inspection by the board or a law enforcement agency for a period of
four years.  Any importer found in violation of these requirements,
or any person who fails, refuses, or neglects to retain or make
available invoices for inspection and copying in accordance with this
section shall be subject to penalties pursuant to Section 22981.
22979.5.  (a) Each manufacturer and each importer of cigarette and
tobacco products subject to licensing under this chapter shall
maintain accurate and complete records relating to the sale of those
products, including, but not limited to, receipts, invoices, and
other records as may be required by the board, during the past four
years with invoices for the past year to be maintained on the
premises for which the license was issued, and shall make these
records available upon request by a representative of the board or a
law enforcement agency.
   (b) Failure of a manufacturer or an importer to comply with this
section shall be a misdemeanor subject to penalties pursuant to
Section 22981.
22979.6.  (a) Each manufacturer and each importer shall include the
following information on each invoice for the sale for distribution,
wholesale, or retail sale of cigarettes or tobacco products:
   (1) The name, address, and telephone number of the manufacturer,
or importer.
   (2) The license number of the manufacturer or importer as provided
by the board.
   (3) The name, address, and license number of the person to whom
cigarettes or tobacco products are sold.
   (4) An itemized listing of the cigarettes or tobacco products
sold.
   (b) Each invoice for the sale of cigarettes or tobacco products
shall be legible and readable.
   (c) Failure to comply with the requirements of this section shall
be a misdemeanor subject to penalties pursuant to Section 22981.
22979.7.  In addition to any other civil or criminal penalty
provided by law, upon a finding that a manufacturer or importer has
violated any provision of this division, the board may take the
following actions:
   (a) In the case of the first offense, the board may revoke or
suspend the license or licenses of the manufacturer or importer
pursuant to the procedures applicable to the revocation of a license
set forth in Section 30148 of the Revenue and Taxation Code.
   (b) In the case of a second or any subsequent offense, in addition
to the action authorized under subdivision (a), the board may impose
a civil penalty in an amount not to exceed the greater of either of
the following:
   (1) Five times the retail value of the seized cigarettes or
tobacco products defined as cigarettes under this section.
   (2) Five thousand dollars ($5,000).