CA AB1901

Expands penalties for possessing, selling, or buying unaffixed cigarette tax stamps to match those for false or fraudulent stamps, with fines up to $5,000 for quantities under 2,000 stamps and up to $50,000 for quantities of 2,000 or greater.

Defines "unaffixed stamps" as previously-paid and previously-affixed stamps that have been removed from packages, excluding unused rolls or loose stamps legally acquired from the State Board of Equalization.

Requires the State Board of Equalization to destroy any unaffixed cigarette tax stamps that are seized during enforcement operations.

Directs all fines assessed under this law to be deposited into the Cigarette and Tobacco Products Compliance Fund for authorized expenditures.

Applies to possession of unaffixed stamps in quantities aggregated for reuse purposes, targeting tax evasion schemes involving stamp reuse rather than legitimate distributor inventory.