AMENDED IN ASSEMBLY JULY 1, 2026

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AMENDED IN SENATE APRIL 27, 2026

AMENDED IN SENATE APRIL 6, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Senator Menjivar

(Coauthor: Senator Weber Pierson)

February 20, 2026

An act to amend Sections 22958 and 22973.1 of, and to add Section 22965 to, the Business and Professions Code, relating to smoke shops. cigarettes and tobacco products.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

The Stop Tobacco Access to Kids Enforcement (STAKE) Act requires the State Department of Public Health to establish and develop a program to reduce the availability of tobacco products to persons under 21 years of age through specified enforcement activities. In addition to the primary enforcement responsibility assumed by the department, existing law authorizes other state and local governmental agencies to conduct inspections and assess penalties for violations of the act, as specified, and encourages state and local enforcement agencies to share the results of inspections and coordinate with the department when enforcing the act. In this regard, existing law authorizes an enforcing agency to assess specified civil penalties against any person, firm, or corporation that sells, gives, or in any way furnishes to another person who is under 21 years of age any tobacco, cigarettes, or cigarette papers. Existing law, upon the assessment of a civil penalty for the 3rd, 4th, or 5th violation, requires the department to notify the California Department of Tax and Fee Administration (CDTFA), and requires the CDTFA to assess civil penalties and suspend or revoke a license issued under the Cigarette and Tobacco Products Licensing Act of 2003.

This bill, effective July 1, 2027, would prohibit the a new retail location for a smoke shop, as defined, retailer of cigarettes or tobacco products from being located within a 600-foot radius of a school or a daycare center unless the local jurisdiction specifies a radius greater than 600 feet. The bill would prohibit a smoke shop from engaging in the retail sale of tobacco products directly to the public between the hours of 10:00 p.m. to 6:00 a.m. The bill would also prohibit a smoke shop retailer of cigarettes or tobacco products from possessing, storing, owning, or selling nitrous oxide or paraphernalia relating to the consumption of nitrous oxide. The bill would authorize an enforcement agency to assess civil penalties for a violation of those provisions. The bill would authorize the CDTFA to then assess a civil penalty and suspend or revoke a license for a violation of those provisions. The bill would exempt a grocery store, as defined, from the bill’s provisions and would define various other terms relating to the bill’s provisions.

The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to issue a license to a retailer to engage in the sale of cigarettes or tobacco products upon receipt of a completed application and payment of certain fees, unless an exception applies.

This bill bill, on and after July 1, 2027, would include among those exceptions a retailer that is a smoke shop located an application for a new license for a retail location within 600 feet of a school or daycare center or a greater radius established by the local jurisdiction. jurisdiction, as specified.

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 STAKE Act, as specified.

This bill would change references in the provisions of the STAKE Act 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.

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known, and may be cited, as the Youth Over Smoke Act.

SEC. 2.

Section 22958 of the Business and Professions Code is amended to read:

22958.

(a) An enforcing agency may assess civil penalties against any person, firm, or corporation that sells, gives, or in any way furnishes to another person who is under 21 years of age any tobacco, cigarette, cigarette papers, any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco, tobacco products, or any controlled substance, according to the following schedule:

(1) A civil penalty of one thousand dollars ($1,000) to one thousand five hundred dollars ($1,500) for the first violation.

(2) A civil penalty of two thousand dollars ($2,000) to three thousand dollars ($3,000) for the second violation at the same location within a five-year period.

(3) A civil penalty of five thousand dollars ($5,000) to ten thousand dollars ($10,000) for the third violation at the same location within a five-year period.

(4) A civil penalty of ten thousand dollars ($10,000) to twenty thousand dollars ($20,000) for a fourth violation within a five-year period.

(5) A civil penalty of at least twenty thousand dollars ($20,000) for five or more violations within a five-year period.

(b) (1) In addition to the civil penalties described in subdivision (a), upon the assessment of a civil penalty for the third, fourth, or fifth violation, the department, within 60 days of the date of service of the final administrative adjudication on the parties or payment of the civil penalty for an uncontested violation, shall notify the California Department of Tax and Fee Administration of the violation. The State Board of Equalization shall then assess a civil penalty of two hundred fifty dollars ($250) and suspend or revoke a license issued pursuant to Chapter 2 (commencing with Section 22971.7) of Division 8.6 in accordance with the following schedule:

(A) A 45-day suspension of the license for a third violation at the same location within a five-year period.

(B) A 90-day suspension of the license for a fourth violation at the same location within a five-year period.

(C) Revocation of the license for a fifth violation at the same location within a five-year period.

(2) The provisions of Chapter 4 (commencing with Section 55121) of Part 30 of Division 2 of the Revenue and Taxation Code apply with respect to the collection of the penalty imposed by the State Board of Equalization pursuant to paragraph (1).

(c) (1) For each suspension or revocation pursuant to subdivision (b), the civil penalty of two hundred fifty dollars ($250) assessed pursuant to that subdivision, notwithstanding Section 22953, shall be deposited into the Cigarette and Tobacco Products Compliance Fund established pursuant to Section 22990. Moneys from that civil penalty deposited into this fund shall be made available to the State Board of Equalization, upon appropriation by the Legislature, for the purposes of meeting its duties under subdivision (b).

(2) The department shall, upon request, provide to the California Department of Tax and Fee Administration information concerning any person, firm, or corporation that has been assessed a civil penalty for violation of the STAKE Act pursuant to this section when the department has notified the State Board of Equalization of the violation.

(d) The enforcing agency shall assess penalties pursuant to the schedule set forth in subdivision (a) against a person, firm, or corporation that sells, offers for sale, or distributes tobacco products from a cigarette or tobacco products vending machine, or a person, firm, or corporation that leases, furnishes, or services these machines in violation of Section 22960.

(e) An enforcing agency may assess civil penalties against a person, firm, or corporation that sells or deals in tobacco or any preparation thereof, and fails to post conspicuously and keep posted in the place of business at each point of purchase the notice required pursuant to subdivision (b) of Section 22952. The civil penalty shall be in the amount of two hundred dollars ($200) for the first offense and five hundred dollars ($500) for each additional violation.

(f) An enforcing agency shall assess penalties in accordance with the schedule set forth in subdivision (a) against a person, firm, or corporation that advertises or causes to be advertised a tobacco product on an outdoor billboard in violation of Section 22961.

(g) An enforcing agency shall assess penalties in accordance with the schedule set forth in subdivision (a) and provide notice in accordance with subdivision (b) against a person, firm, or corporation in violation of Section 22965. The California Department of Tax and Fee Administration shall then assess a civil penalty and suspend or revoke a license pursuant to subdivision (b) for violations of Section 22965.

(h) If a civil penalty has been assessed pursuant to this section against a person, firm, or corporation for a single, specific violation of this division, the person, firm, or corporation shall not be prosecuted under Section 308 of the Penal Code for a violation based on the same facts or specific incident for which the civil penalty was assessed. If a person, firm, or corporation has been prosecuted for a single, specific violation of Section 308 of the Penal Code, the person, firm, or corporation shall not be assessed a civil penalty under this section based on the same facts or specific incident upon which the prosecution under Section 308 of the Penal Code was based.

(i) (1) In the case of a corporation or business with more than one retail location, to determine the number of accumulated violations for purposes of the penalty schedule set forth in subdivision (a), violations of this division by one retail location shall not be accumulated against other retail locations of that same corporation or business.

(2) In the case of a retail location that operates pursuant to a franchise as defined in Section 20001, violations of this division accumulated and assessed against a prior owner of a single franchise location shall not be accumulated against a new owner of the same single franchise location for purposes of the penalty schedule set forth in subdivision (a).

(j) Proceedings under this section shall be conducted pursuant to Section 131071 of the Health and Safety Code, except in cases where a civil penalty is assessed by an enforcing agency other than the department, in which case proceedings shall be conducted pursuant to the procedures of that agency that are consistent with Section 131071 of the Health and Safety Code.

SEC. 3.

Section 22965 is added to the Business and Professions Code, to read:

22965.

(a) For purposes of this section, the following definitions apply:

(1) “Daycare center” means a facility, other than a family daycare home, serving infant, toddler, preschool, or schoolage children licensed by the State Department of Social Services pursuant to Chapter 3.5 (commencing with Section 1596.90) of Division 2 of the Health and Safety Code.

(2) “License” shall have the same meaning as provided in Section 22971.

(3) “Nitrous oxide” shall have the same meaning as provided in Section 381c of the Penal Code.

(4) “Retailer” shall have the same meaning as provided in Section 22971.

(5) “Retail location” shall have the same meaning as provided in Section 22971. 22971, except that a retailer does not include a grocery store, as defined in paragraph (3) of subdivision (e) of Section 113948 of the Health and Safety Code.

(6) “School” means, as evidenced by the State Department of Education’s school directory, either of the following:

(A) A public school instructing children in kindergarten or any of grades 1 to 12, inclusive, as authorized by the State Department of Education.

(B) A private school instructing children in kindergarten or any of grades 1 to 12, inclusive, that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the Education Code, excluding any private school in which education is primarily conducted in a private home.

(b) Effective July 1, 2027, the a new retail location for a smoke shop retailer shall not be located within a 600-foot radius of a school or daycare center unless the local jurisdiction specifies a radius greater than 600 feet. The distance specified in this subdivision shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code, unless otherwise provided by law.

(c) A smoke shop retailer shall not possess, store, own, or sell nitrous oxide, including products derived from or containing nitrous oxide, or paraphernalia related to the consumption of nitrous oxide.

SEC. 4.

Section 22973.1 of the Business and Professions Code is amended to read:

22973.1.

(a) The board shall issue a license to a retailer upon receipt of a completed application and payment of the fees prescribed in Section 22973, unless any of the following apply:

(1) The retailer, or if the retailer is not an individual, any person controlling the retailer, has previously been issued a license that is suspended or revoked by the board for violation of any of the provisions of this division.

(2) The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:

(A) It has been more than five years since a previous license for the retail location was revoked.

(B) The person applying for the license provides the board with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction. For purposes of this section, an “arm’s length transaction” is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this division that occurred at the retail location, is presumed not to be made at “arm’s length.”

(3) The retailer, or if the retailer is not an individual, any person controlling the retailer, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.

(4) The retailer does not possess all required permits or licenses required under the Revenue and Taxation Code.

(b) (1) Any retailer who is denied a license may petition for a redetermination of the board’s denial of the license within 30 days after service upon that retailer of the notice of the denial of the license. If a petition for redetermination is not filed within the 30-day period, the determination of denial becomes final at the expiration of the 30-day period.

(2) Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to state additional grounds at anytime prior to the date on which the board issues its order or decision upon the petition for redetermination.

(3) If the petition for redetermination is filed within the 30-day period, the board shall reconsider the determination of the denial and, if the retailer has so requested in the petition, shall grant the retailer an oral hearing and shall give the retailer at least 10 days’ notice of the time and place of the hearing. The board may continue the hearing from time to time as may be necessary.

(4) The order or decision of the board upon a petition for redetermination becomes final 30 days after mailing of notice thereof.

SEC. 5.

The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.