SB 936

Existing law makes it a misdemeanor to possess nitrous oxide with the intent of inhaling it for specified purposes, including to cause intoxication. Existing law also makes it a misdemeanor to sell nitrous oxide to any person under 18 years of age. Existing law makes it a misdemeanor to dispense nitrous oxide to a person and knowing that the person will use it for specified prohibited purposes, if that person then causes death or great bodily injury to themselves or another person. Under existing law, the Cigarette and Tobacco Products Licensing Act of 2003, the California Department of Tax and Fee Administration (CDTFA) administers and enforces a statewide program to license manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. Existing law specifically requires a retailer, distributor, or wholesaler, as defined, to hold a license from the CDTFA to engage in the sale of cigarettes or tobacco products. Existing law subjects these licenses to suspension or revocation for violations of existing law. Existing law imposes specified noticing and posting requirements for retailer licenses that are revoked. A violation of these provisions is a misdemeanor. This bill would, except as specifically exempted, prohibit the sale and distribution of a nitrous oxide container that is capable of holding more than 8 grams of nitrous oxide or from which an individual may directly inhale nitrous oxide. The bill would also prohibit the sale and distribution of a nitrous oxide that has, or is marketed as having, the taste or smell of any food. The bill would prohibit knowingly selling or distributing a device that allows an individual to inhale nitrous oxide from the container or hold nitrous oxide for the purposes of inhalation. The bill would punish a violation of these provisions as an infraction, as specified. The bill would also authorize a court to suspend a business license if the business has a prior conviction for violating these prohibitions, and to revoke a license to sell tobacco products if the business has 2 prior convictions for violating these prohibitions. The bill would make any person, distributor, or business found to have violated these prohibitions liable for all reasonable costs incurred by a public agency in the investigation, inspection, seizure, storage, transportation, handling, venting, abatement, disposal, or destruction of nitrous oxide products, nitrous oxide containers, inhalation devices, or related materials involved in the violation, as specified. This bill would prohibit a person that is engaged in the business of selling cigarettes or tobacco products in this state from possessing, storing, owning or selling nitrous oxide, in violation of the criminal provisions outlined above, at any site where cigarettes and tobacco products are stored or sold. The bill would authorize the CDTFA to seize nitrous oxide products, as prescribed. The bill would subject a violator to civil penalties in amounts depending on the aggregate retail value of the seized nitrous oxide and the number of violations within 5 years of the first violation. The bill would require the deposit of collected civil penalties in the Cigarette and Tobacco Products Compliance Fund. The bill would also subject a violator who commits a 2nd violation to license suspension and who commits a 3rd violation to license revocation, as prescribed. This bill would establish procedures for the CDTFA to follow for a court-ordered revocation. The bill would require the CDTFA to assess a $250 civil penalty for each revoked license and to deposit collected civil penalties into the fund, to be made available to the department, upon appropriation by the Legislature, for purposes of administering the bill. The bill would authorize a licensee to apply for a new license at the previously revoked location 6 months after the date of revocation and would authorize the CDTFA, at its discretion, to issue a new license. The bill would apply these noticing and posting requirements to a retailer subject to a court-ordered revocation pursuant to the bill. The California Constitution provides for the establishment of the State Board of Equalization, which, before July 1, 2017, had primary responsibility for most of the state’s duties, powers, and responsibilities regarding the administration of taxes and fees. Existing law, on July 1, 2017, transferred to the CDTFA various duties, powers, and responsibilities of the State Board of Equalization, including administration of the Cigarette and Tobacco Products Licensing Act of 2003, as specified. This bill would change references in the provisions of the Cigarette and Tobacco Products Licensing Act of 2003 amended by this bill from the “State Board of Equalization” to the “California Department of Tax and Fee Administration” to reflect the transfer of the board’s duties, powers, and responsibilities to the CDTFA. Because this bill would create new crimes, it would impose a state-mandated local program. 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. This bill would provide that no reimbursement is required by this act for a specified reason.