Cigarette and tobacco products: licensing and enforcement.

Assembly Member Rogers proposes comprehensive changes to California's tobacco retailer licensing program, adjusting fees and strengthening enforcement mechanisms to address compliance challenges with flavored tobacco regulations. The legislation would increase the maximum tobacco retailer licensing fee from $265 to $600 annually to fund expanded inspection and enforcement activities.

The bill establishes new oversight requirements, directing the Legislative Analyst to evaluate program funding adequacy and retailer inspection rates through reports due in 2027 and 2029. These assessments must examine agency coordination strategies, analyze whether licensing fees support effective enforcement, and review costs associated with seized product disposal. The reporting mandate expires in 2034.

For wholesalers violating flavored tobacco restrictions, the legislation standardizes the definition of "package" when calculating penalties and clarifies procedures for product seizures. The bill maintains the existing $50 per-package civil penalty while establishing a graduated enforcement system - warnings for first violations, license suspension for second infractions, and license revocation for third offenses. The measure also consolidates overlapping enforcement provisions by repealing redundant authority granted through previous legislation.

The changes come as state data indicates rising retailer violation rates since California's flavored tobacco ban took effect, with current inspection capacity limited to approximately 15% of licensed locations annually. The California Department of Tax and Fee Administration oversees licensing for roughly 30,000 tobacco retailers statewide.