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Business Taxes Law Guide—Revision 2024

Cigarette and Tobacco Products Licensing Act

Business and Professions Code

Division 8.6. Cigarette and Tobacco Products Licensing Act of 2003

Chapter 3. License for Wholesalers and Distributors of Cigarettes and Tobacco Products

Section 22978.7


22978.7. Penalty for violation of provisions. In addition to any other civil or criminal penalty provided by law, upon a finding that any distributor or any wholesaler has violated any provision of this division, the board may take the following actions:

(a) In the case of the first offense, the board may revoke or suspend the license or licenses of the distributor or the wholesaler pursuant to the procedures applicable to the revocation of a license set forth in Section 30148 of the Revenue and Taxation Code.

(b) In the case of a second or any subsequent offense, in addition to the action authorized under subdivision (a), the board may impose a civil penalty in an amount not to exceed the greater of either of the following:

(1) Five times the retail value of the seized cigarettes or tobacco products.

(2) Five thousand dollars ($5,000).

History—Stats. 2005, Ch. 512 (AB 892), in effect January 1, 2006, added "seized" after "the retail value of the" in subdivision (b)(1).