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AB-573 • 2026

Cigarette and tobacco products: licensing and enforcement.

Cigarette and tobacco products: licensing and enforcement.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rogers
Last action
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

The official text does not specify a general effective date for the bill other than the specific dates mentioned for fees and reports.

Cigarette and Tobacco Product Licensing Fees and Enforcement Updates

This law raises fees for tobacco retailer licenses starting in July 2026, requires new reports on enforcement efforts, updates penalty definitions for wholesalers, and repeals a specific rule about seizing illegal flavored products from retailers.

What This Bill Does

  • Increases the application fee for a retail tobacco license to $450 per location for applications filed on or after July 1, 2026.
  • Raises the renewal fee for a retail tobacco license to $450 per location for renewals filed on or after July 1, 2026.
  • Allows the Department of Tax and Fee Administration to raise fees up to $600 if needed to cover program costs.
  • Requires the Legislative Analyst to submit reports in December 2027 and December 2029 about how tobacco laws are enforced.
  • Defines terms like 'flavored tobacco product' so penalties apply equally to wholesalers and retailers for illegal items by adding a definition of 'package' for wholesalers.
  • Repeals the provision added by SB 1230 that allowed state agencies to seize and forfeit illegal flavored products from retailers.

Who It Names or Affects

  • Retailers who sell cigarettes or other tobacco products in California.
  • Wholesalers of tobacco products facing penalties for selling illegal flavors.
  • The Legislative Analyst, who must prepare enforcement reports.
  • State agencies that cooperate with the preparation of these reports.

Terms To Know

Retailer license
A permit required by law for a store to sell cigarettes or tobacco products, now formally called a retailer license under this bill.
Cigarette and Tobacco Products Compliance Fund
The account that holds money collected from fees to pay for running the licensing program.
Flavored tobacco product
Tobacco items with added flavors, which are restricted or banned by law and subject to penalties if sold illegally.

Limits and Unknowns

  • The exact date the new fees take effect is July 1, 2026.
  • Fees may rise above $450 but cannot exceed $600 per location if costs increase.
  • The official effective date of the entire law beyond the fee start dates is not specified in the provided text.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

Cigarette and tobacco products: licensing and enforcement.