Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Cigarette and Tobacco Products Licensing Act Regulations

Title 18 of the California Code of Regulations

Article 4. Penalties and Fines

Regulation 4605

Regulation 4605. Penalties for Licensed or Unlicensed Manufacturers and Importers.

Reference: Sections 22974.7, deletion 22979(b)(1), 22979.4, 22979.5(b), 22979.6(c), 22979.7, 22980.1(a), (e), and (f), and 22980.2(a), 22980.3 (a)(2) and (d) deletion, Business and Professions Code.

The following penalties shall be assessed 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 the Act:

(a) A first offense of a violation of any of the following provisions will result in the issuance of a Warning Notice to the licensee or unlicensed person:

(1) Business and Professions Code section 22979.4 (importer's failure to retain purchase invoices on premises).

(2) Business and Professions Code section 22979, subdivision (b)(1) (participating manufacturer's false statement on certification to the Board).

(3) Business and Professions Code section 22979.5, subdivision (b) (manufacturer's or importer's failure to retain sales records on premises).

(4) Business and Professions Code section 22980.1, subdivision (a), (e) or (f) (purchases or sales from or to an unlicensed person or person with suspended or revoked license).

(5) Business and Professions Code section 22980.2, subdivision (a) (sales of cigarettes or tobacco products by unlicensed person or person with suspended or revoked license).

(6) Business and Professions Code section 22979.6, subdivision (c) (manufacturer's or importer's failure to comply with invoice requirements).

(b) A first offense of a violation of Business and Professions Code section 22980.1, subdivision (g) (purchase of cigarettes to which a stamp may not be affixed in accordance with Rev. & Tax. Code, section 30163, subd.(b)) shall result in a 20-day suspension.

(c) A second or subsequent offense for a violation of the provisions listed in subdivision (a) or (b) above shall result in both a 30-day suspension or revocation and a fine.

(d) In cases involving multiple violations, the violation punishable by the most severe penalty will be used for purposes of determining the penalty assessed.

(e) Notwithstanding subdivisions (b) through (d) above, a reduction in the length of a suspension period may be warranted if mitigating circumstances are present, as set forth in Regulation 4606. If any suspension period is reduced, the redetermined period of suspension shall be 0 days, 5 days, 10 days, or 20 days. The existence of mitigating circumstances may also warrant reducing a revocation penalty to a 30-day suspension, unless revocation is mandated pursuant to Business and Professions Code section deletion 22980.3, subdivision (a)(2) or subdivision (d).

History: Adopted December 12, 2006, effective April 21, 2007.

Amended June 11, 2013, effective October 1, 2013. Inserted “5 days,” into the second sentence in subdivision (e); deleted the references to Business and Professions Code sections 22974.4 and 22978.6 from and added “or subdivision (d)” to the last sentence in subdivision (e); and deleted the reference to Business Professions Code section 22978.7 from, moved the references to Business Professions Code sections 22979.4, and 22979.6, subdivision (c) in, and added a reference to Business and Professions Code section 22980.3, subdivisions (a)(2) and (d) to the regulation’s reference note.