Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Cigarette and Tobacco Products Licensing Act Law

Chapter 1. General Provisions and Definitions

Section 22971

22971. Definitions. For purposes of this division, the following terms shall have the following meanings:

(a) "Board" means the State Board of Equalization."

(b) "Brand family" has the same meaning as that term is defined in paragraph (2) of subdivision (a) of Section 30165.1 of the Revenue and Taxation Code.

(c) "Cigarette" means a cigarette as defined in Section 30003 of the Revenue and Taxation Code.

(d) (1) "Control" or "controlling" means possession, direct or indirect, of the power:

(A) To vote 25 percent or more of any class of the voting securities issued by a person.

(B) To direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, other than a commercial contract for goods or nonmanagement services, or as otherwise provided; however, no individual shall be deemed to control a person solely on account of being a director, officer, or employee of that person.

(2) For purposes of subparagraph (B) of paragraph (1), a person who, directly or indirectly, owns, controls, holds, with the power to vote, or holds proxies representing 10 percent or more of the then outstanding voting securities issued by another person, is presumed to control that other person.

(3) For purposes of this division, the board may determine whether a person in fact controls another person.

(e) "Display for sale" means the placement of cigarettes or tobacco products in a vending machine or in retail stock for the purpose of selling or gifting the cigarettes or tobacco products. For purposes of this definition, the clear and easily visible display of cigarettes or tobacco products shall create a rebuttable presumption that either were displayed for sale.

(f) "Distributor" means a distributor as defined in Section 30011 of the Revenue and Taxation Code.

(g) "Gifting" means any transfer of title or possession without consideration, exchange, or barter, in any manner or by any means, of cigarettes or tobacco products that have been purchased for resale under a license issued pursuant to this division if the transfer occurs while the license is suspended or after the effective date of its revocation.

(h) "Importer" means an importer as defined in Section 30019 of the Revenue and Taxation Code.

(i) "Law enforcement agency" means a sheriff, a police department, or a city, county, or city and county agency or department designated by the governing body of that agency to enforce this chapter or to enforce local smoking and tobacco ordinances and regulations.

(j) "License" means a license issued by the board pursuant to this division.

(k) "Licensee" means any person holding a license issued by the board pursuant to this division.

(l) "Manufacturer" means a manufacturer of cigarettes or tobacco products sold in this state.

(m) "Notice" or "notification" means, unless as otherwise provided, the written notice or notification provided to a licensee by the board by either actual delivery to the licensee or by first-class mail addressed to the licensee at the address on the license.

(n) "Package of cigarettes" means a package as defined in Section 30015 of the Revenue and Taxation Code.

(o) "Person" means a person as defined in Section 30010 of the Revenue and Taxation Code.

(p) "Retailer" means a person who engages in this state in the sale of cigarettes or tobacco products directly to the public from a retail location. Retailer includes a person who operates vending machines from which cigarettes or tobacco products are sold in this state.

(q) "Retail location" means both of the following:

(1) Any building from which cigarettes or tobacco products are sold at retail.

(2) A vending machine.

(r) "Sale" or "sold" means a sale as defined in Section 30006 of the Revenue and Taxation Code.

(s) "Tobacco products" means tobacco products as defined in subdivision (b) of Section 30121 and subdivision (b) of Section 30131.1 of the Revenue and Taxation Code.

(t) "Unstamped package of cigarettes" means a package of cigarettes that does not bear a tax stamp as required under Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, including a package of cigarettes that bears a tax stamp of another state or taxing jurisdiction, a package of cigarettes that bears a counterfeit tax stamp, or a stamped or unstamped package of cigarettes that is marked "Not for sale in the United States."

(u) "Wholesaler" means a wholesaler as defined in Section 30016 of the Revenue and Taxation Code.

History.—Stats. 2004, Ch. 82 (AB 2491), in effect June 30, 2004, substituted "purposes" for "purpose" in the first paragraph, and added subdivision (r). Stats. 2006, Ch. 501 (AB 1749), in effect January 1, 2007, but operative May 1, 2007, added "or tobacco products" after "manufacturer of cigarettes" in subdivision (d) and added subdivision (s). Stats. 2010, Ch. 607 (AB 2733), in effect January 1, 2011, relettered former subdivision (r) as subdivision (b); relettered former subdivision (h) as subdivision (c); relettered former subdivision (p)(1)(A)-(3) as subdivision (d)(1)(A)-(3); added subdivision (e); relettered former subdivision (c) as subdivision (f); added subdivision (g); relettered former subdivision (b) as subdivision (h); relettered former subdivision (q) as subdivision (i); relettered former subdivision (i) as subdivision (j); relettered former subdivision (j) as subdivision (k); relettered former subdivision (d) as subdivision (l); added subdivision (m); relettered former subdivision (o) as subdivision (n); relettered former subdivision (n) as subdivision (o); relettered former subdivision (e) as subdivision (p); relettered former subdivision (f) as subdivision (q); relettered former subdivision (k) as subdivision (r); relettered former subdivision (l) as subdivision (s); relettered former subdivision (m) as subdivision (t); and relettered former subdivision (j) as subdivision (u).