AB 573 — Cigarette and tobacco products: licensing and enforcement.

Summary

The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer to have in place and maintain a license to engage in the sale of cigarettes or tobacco products. The act requires a $265 fee to be submitted with the application for the license. Existing law requires every retailer to file an application for renewal of the license accompanied by a $265 fee per retail location. This bill would make conforming changes to the provisions describing the application process for the license described above and recast that license as a retailer license. The bill would require each application for a retailer license filed on or after July 1, 2026, to be accompanied by a fee of $450 per retail location. The bill would increase the fee for renewal of a retailer license to $450 for renewal applications filed on or after July 1, 2026. The bill would authorize the department to adjust application and renewal fees applicable after July 1, 2026, to an amount not exceeding $600 per retail location to maintain the Cigarette and Tobacco Products Compliance Fund at a level that is no more than necessary to cover the reasonable costs of the department to administer the act. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license. This bill would recast that license as a retailer license and make other conforming changes. The bill would require each application for a retailer license filed on or after July 1, 2026, to be accompanied by a fee of $450 per retail location. The bill would increase the fee for renewal of a retailer license to $450 for renewal applications filed on or after July 1, 2026. The bill would authorize the department to adjust application and renewal fees applicable after July 1, 2026, to an amount not exceeding $600 per retail location to maintain the Cigarette and Tobacco Products Compliance Fund at a level that is no more than necessary to cover the reasonable costs of the department to administer the act. This bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, to prepare and submit reports to the Legislature on the tobacco retailer enforcement landscape, including enforcement of California's flavor, youth access, taxation, and licensing laws. The bill would require specified state agencies to cooperate with the Legislative Analyst in the preparation and production of the report. The bill would repeal those reporting requirements on January 1, 2034. Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines "package" for purposes of the penalty provision applicable to retailers. This bill would define "flavored tobacco product" and "tobacco product flavor enhancer" for these purposes and would add the same definition of "package" for purposes of the penalty provision applicable to wholesalers. Chapter 462 of the Statutes of 2024 (SB 1230) , among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailer's products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited. This bill would repeal the above-described provision added by SB 1230. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.

Bill Text

• Chaptered 10/03/25 - Chaptered Current pdf October 03, 2025
• Enrolled 09/12/25 - Enrolled pdf September 12, 2025
• Amended 09/04/25 - Amended Senate pdf September 04, 2025
• Amended 07/03/25 - Amended Senate pdf July 03, 2025
• Amended 03/28/25 - Amended Assembly pdf March 28, 2025
• Introduced 02/12/25 - Introduced pdf February 12, 2025
• AB573 View text html

Action History

1. October 03, 2025

   Chaptered by Secretary of State - Chapter 269, Statutes of 2025.

2. October 03, 2025

   Approved by the Governor.

3. September 22, 2025

   Enrolled and presented to the Governor at 3 p.m.

4. September 10, 2025

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 62. Noes 1. Page 3198.).

5. September 09, 2025

   In Assembly. Concurrence in Senate amendments pending.

6. September 09, 2025

   Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0. Page 2735.).

7. September 08, 2025

   Read second time. Ordered to third reading.

8. September 04, 2025

   Read third time and amended. Ordered to second reading.

9. August 29, 2025

   From committee: Do pass. (Ayes 5. Noes 0.) (August 29).

10. August 29, 2025

    Read second time. Ordered to third reading.

11. August 18, 2025

    In committee: Referred to suspense file.

12. July 09, 2025

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (July 9). Re-referred to Com. on APPR.

13. July 03, 2025

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.

14. July 03, 2025

    From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 9. Noes 0.) (July 2). Re-referred to Com. on REV. & TAX.

15. June 18, 2025

    Referred to Coms. on HEALTH and REV. & TAX.

16. June 04, 2025

    In Senate. Read first time. To Com. on RLS. for assignment.

17. June 03, 2025

    Read third time. Passed. Ordered to the Senate. (Ayes 63. Noes 1. Page 1973.)

18. May 27, 2025

    Read second time. Ordered to third reading.

19. May 23, 2025

    From committee: Do pass. (Ayes 11. Noes 0.) (May 23).

20. April 30, 2025

    In committee: Set, first hearing. Referred to suspense file.

21. April 23, 2025

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 22). Re-referred to Com. on APPR.

22. April 23, 2025

    Coauthors revised.

23. April 01, 2025

    Re-referred to Com. on HEALTH.

24. March 28, 2025

    Referred to Coms. on HEALTH and JUD.

25. March 28, 2025

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

26. February 13, 2025

    From printer. May be heard in committee March 15.

27. February 12, 2025

    Read first time. To print.

Sponsors

• Chris Rogers · Primary

Votes

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