SB936 - Nitrous oxide: sales.

Amended IN Assembly August 17, 2026 Amended IN Assembly July 02, 2026 Amended IN Senate May 18, 2026 Amended IN Senate April 28, 2026 Amended IN Senate April 08, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 936 Introduced by Senators Blakespear and Umberg (Coauthor: Senator Weber Pierson) (Coauthors: Assembly Members Alanis, Addis, Bonta, Caloza, Davies, Dixon, Hadwick, Irwin, Lowenthal, and Rogers) January 29, 2026 An act to amend Sections 22973.1, 22977.2, 22980.3, and 22980.5 of, and to add Sections 22980.7 and 22980.8 to, the Business and Professions Code, and to add Chapter 10 (commencing with Section 119408) to Part 15 of Division 104 of the Health and Safety Code, relating to nitrous oxide. LEGISLATIVE COUNSEL'S DIGEST SB 936, as amended, Blakespear. Nitrous oxide: sales. Existing law makes it a misdemeanor to possess nitrous oxide with the intent of inhaling it for specified purposes, including to cause intoxication. Existing law also makes it a misdemeanor to sell nitrous oxide to any person under 18 years of age. Existing law makes it a misdemeanor to dispense nitrous oxide to a person and knowing that the person will use it for specified prohibited purposes, if that person then causes death or great bodily injury to themselves or another person. Existing Under existing law, the Cigarette and Tobacco Products Licensing Act of 2003, the California Department of Tax and Fee Administration (CDTFA) administers and enforces a statewide program to license manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. Existing law specifically requires a retailer, distributor, or wholesaler, as defined, to hold a license from the California Department of Tax and Fee Administration CDTFA to engage in the sale of cigarettes or tobacco products. Existing law subjects these licenses to suspension or revocation for violations of existing law. Existing law imposes specified noticing and posting requirements for retailer licenses that are revoked. A violation of these provisions is a misdemeanor. This bill would, except as specifically exempted, prohibit the sale and distribution of a nitrous oxide container that is capable of holding more than 8 grams of nitrous oxide or from which an individual may directly inhale nitrous oxide. The bill would also prohibit the sale and distribution of a nitrous oxide that has, or is marketed as having, the taste or smell of any food. The bill would prohibit knowingly selling or distributing a device that allows an individual to inhale nitrous oxide from the container or hold nitrous oxide for the purposes of inhalation. The bill would punish a violation of these provisions as an infraction, as specified. The bill would also authorize a court to suspend the business license, including a license to sell tobacco products, a business license if the business has a prior conviction for violating these prohibitions. prohibitions, and to revoke a license to sell tobacco products if the business has 2 prior convictions for violating these prohibitions. The bill would make any person, distributor, or business found to have violated these prohibitions liable for all reasonable costs incurred by a public agency in the investigation, inspection, seizure, storage, transportation, handling, venting, abatement, disposal, or destruction of nitrous oxide products, nitrous oxide containers, inhalation devices, or related materials involved in the violation, as specified. This bill would prohibit a person that is engaged in the business of selling cigarettes or tobacco products in this state from possessing, storing, owning or selling nitrous oxide, in violation of the criminal provisions outlined above, at any site where cigarettes and tobacco products are stored or sold. The bill would authorize the CDTFA to seize nitrous oxide products, as prescribed. The bill would subject a violator to civil penalties in amounts depending on the aggregate retail value of the seized nitrous oxide and the number of violations within 5 years of the first violation. The bill would require the deposit of collected civil penalties in the Cigarette and Tobacco Products Compliance Fund. The bill would also subject a violator who commits a 2nd violation to license suspension and who commits a 3rd violation to license revocation, as prescribed. This bill would establish procedures for the CDTFA to follow for a court-ordered revocation. The bill would require the CDTFA to assess a $250 civil penalty for each revoked license and to deposit collected civil penalties into the fund, to be made available to the department, upon appropriation by the Legislature, for purposes of administering the bill. The bill would authorize a licensee to apply for a new license at the previously revoked location 6 months after the date of revocation and would authorize the CDTFA, at its discretion, to issue a new license. The bill would apply these noticing and posting requirements to a retailer subject to a court-ordered revocation pursuant to the bill. 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 Cigarette and Tobacco Products Licensing Act of 2003, as specified. This bill would change references in the provisions of the Cigarette and Tobacco Products Licensing Act of 2003 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. Because this bill would create new crimes, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 22973.1 of the Business and Professions Code is amended to read: 22973.1. (a) The board department 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 either of the following: (A) Suspended or revoked by the board department for violation of any of the provisions of this division. (B) Revoked by the department pursuant to a court order issued under subdivision (f) of Section 119408 of the Health and Safety Code. (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 department 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 department’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 any time before the date on which the board department 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 department shall reconsider the determination of the denial and, if the retailer has so requested it 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 department may continue the hearing from time to time as may be necessary. (4) The order or decision of the board department upon a petition for redetermination becomes final 30 days after mailing of notice thereof. SEC. 2. Section 22977.2 of the Business and Professions Code is amended to read: 22977.2. (a) The board department shall issue a license to a distributor or a wholesaler upon receipt of a completed application and payment of the fee prescribed in Section 22977.1, unless any of the following apply: (1) The distributor or the wholesaler, or if the distributor or the wholesaler is not an individual, any person controlling the distributor or the wholesaler, has previously been issued a license that is suspended one of the following: (A) Suspended or revoked by the board department for violation of any of the provisions of this division. (B) Revoked by the department pursuant to a court order issued under subdivision (f) of Section 119408 of the Health and Safety Code. (2) The application is for a license or renewal of a license for a distributor or a wholesaler, whose license is revoked or revocation is pending, unless: (A) It has been more than five years since a distributor’s or a wholesaler’s previous license was revoked. (B) The person applying for the license provides the board department with documentation demonstrating that the applicant has acquired or is acquiring the 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 of the business between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of state tobacco control laws that were committed by the distributor or wholesaler is presumed not to be made at “arm’s length.” (3) The distributor or the wholesaler, or if the distributor or the wholesaler is not an individual, any person controlling the distributor or the wholesaler has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code. (b) (1) Any distributor or any wholesaler who is denied a license may petition for a redetermination of the board’s department’s denial of the license within 30 days after service upon that distributor or that wholesaler 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 any time before the date on which the board department 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 department shall reconsider the determination of the denial and, if the distributor or the wholesaler has so requested it in the petition, shall grant the distributor or wholesaler an oral hearing and shall give the distributor or the wholesaler at least 10 days’ notice of the time and place of the hearing. The board department may continue the hearing from time to time as may be necessary. (4) The order or decision of the board department upon a petition for redetermination becomes final 30 days after mailing of notice thereof. SEC. 3. Section 22980.3 of the Business and Professions Code is amended to read: 22980.3. (a) Licenses Except as provided in subdivision (l), a license issued pursuant to this division shall be subject to suspension or revocation for violations of this division or the Revenue and Taxation Code as provided in this section. (1) In addition to any applicable fines or penalties for a violation, upon first conviction of a violation, a licensee shall receive a written notice from the board department detailing the suspension and revocation provisions of this division. At its discretion, the board department may also suspend a license for up to 30 days. (2) In addition to any applicable fines or penalties for a violation, upon a second conviction of a violation within four years of a previous violation, the license shall be revoked. (b) The date of the occurrence of a violation shall be used to calculate the duration between subsequent violations. A violation shall be noted in the license record at the board department only after judicial conviction or final adjudication of a violation. (c) Upon updating a record for a violation triggering a suspension, the board department shall serve the licensee with a notice of suspension and shall order the licensee to cease the sale, gifting, or displaying for sale of cigarettes or tobacco products for the period of the suspension. The notice of suspension shall inform the licensee of the effective dates of the suspension. (d) Continued sales or gifting of cigarettes or tobacco products after the effective date of the suspension shall constitute a violation of this division and result in the revocation of a license. (e) Upon completion of a suspension period, a license shall be reinstated [Text truncated for display. Full text available on Congress.gov.]