February 24, 2026
Community Development
DATE: February 24, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Avery Stark, Planning Manager
Eva Mann, Code Enforcement Manager
Subject:
Tobacco Retailer License Amendments
FINANCIAL IMPACT: The proposed ordinance will not result in an impact on the General Fund. Tobacco Retailer Licenses issued by
the City have an associated fee to recover the staff time necessary to process the application and complete
inspections of such retailers to ensure compliance with specified standards.
PREVIOUS COUNCIL
ACTION:
April 16, 2024
May 21, 2024
April 1, 2025
July 1, 2025
STATEMENT OF THE
ISSUE:
Due to the proliferation of unlicensed tobacco retailers within the City of Richmond, the City Council passed an Urgency Ordinance on April 16, 2024, placing a
moratorium on permitting new tobacco retailers until the City could develop measures to address the negative
impacts of the increase in unpermitted tobacco retailers and establishing operating standards necessary to
reasonably regulate tobacco operations. The City Council voted on April 1, 2025, to extend the moratorium until
April 15, 2026. City staff is recommending amendments
to Richmond Municipal Code Chapter 7.106 to ensure
compliance with State law relating to the statewide
prohibition on the sale of flavored tobacco products. City staff engaged a consultant to assist in the development AGENDA
REPORT
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of enhanced regulations. The proposed ordinance
amends Chapter 7.106 and repeals Chapter 7.107.
RECOMMENDED ACTION:
HOLD a public hearing to INTRODUCE an ordinance
(first reading) amending Chapter 7.106 entitled “Tobacco Retailer License” and repealing Richmond Municipal
Code Chapter 7.107 to comply with updates to State law
relating to the sale of flavored tobacco products,
establish a cap of 50 licenses that can be issued at any one time to protect against overconcentration, and to add operational prerequisites and enhanced regulations for
enforcement of violations (including retailing without a tobacco retail license, sales to minors, and sales of illegal and hazardous substances), which shall aim to protect
vulnerable demographics, streamline compliance
standards, and enhance available enforcement tools –
Community Development Department (Lina
Velasco/Avery Stark/Eva Mann 510-621-1283).
DISCUSSION
Background
The City Council of the City of Richmond has a well-documented record of regulating the activity of tobacco retailing in the City to protect the public health, safety, and welfare of its residents, and most importantly its youth.
On July 17, 2018, the City Council adopted Ordinance No. 20-18 N.S., which, among other things, amended Richmond Municipal Code (“RMC”) Chapter 7.106, prohibiting the sale of menthol and other flavored tobacco products, establishing a minimum pack size for little cigars and traditional cigars, and imposing location requirements on new tobacco retailers from youth populated areas and other licensed retailers. In passing this ordinance, the City Council adopted explicit and extensive findings highlighting how the sale of tobacco, particularly to youth, presents an imminent threat to the public health, safety, and welfare of the residents of the City of Richmond.
On September 10, 2019, the City Council adopted Ordinance No. 14-19 N.S. amending Richmond Municipal Code Chapter 7.106 - Tobacco Retailer License - to prohibit the sale of electronic cigarettes.
In 2021, the oversight of the Tobacco Retailer License program was transferred from the Richmond Police Department’s Regulatory Unit to the Code Enforcement Division of the Community Development Department.
In late 2023, the City noticed an increase in the establishment of new tobacco retailers that failed to obtain proper licensing, which in part was likely the result of other neighboring cities strengthening regulations and enforcement tools, placing the City in a
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position to be an attractive market for unlicensed tobacco retailers. Following these complaints regarding the proliferation of unlicensed tobacco retailers, locations of tobacco retailer businesses, and the harmful effects of tobacco on the health, safety and welfare of City residents, especially the youth population, on April 15, 2024, the City Council adopted Urgency Ordinance No. 03-24 N.S., which imposed a temporary 45- day moratorium on the issuance of any new permits, licenses, or entitlements for new tobacco retailers within the City.
On May 21, 2024, the City Council adopted Urgency Ordinance No. 05-24 N.S. extending the temporary moratorium to April 15, 2025, to provide staff sufficient time to study the issue and propose amendments to the Municipal Code. During this study period, regulatory inspections were conducted at several tobacco retailers, which revealed that the issues relating to tobacco retailers were much broader and more serious than initially believed. Specifically, the inspections found that unlicensed tobacco retailing was only one of many violations, which also included the use of underage employees, the marketing and sale of unlawful cannabis, illicit drugs, and drug paraphernalia, and the stocking of large quantities of flavored tobacco products at multiple locations. As such, on April 1, 2025, the City Council adopted Ordinance No. 09-25, which extended the moratorium for another one year until April 15, 2026 to provide additional time to study and develop viable solutions to address the myriad public health, welfare, and safety issues identified. Further, in July 2025, the City Council amended the moratorium to provide for a pathway for certain unlicensed tobacco retailers to obtain a City tobacco retailer license during the moratorium and ultimately come into compliance with City regulations.
Notice of the February 24, 2026 public hearing was posted on the City’s Tobacco Retailers webpage: https://www.ci.richmond.ca.us/4662/Tobacco-Retailers-License and was sent via the ‘Notify Me’ notification to all subscribers. In addition, the public hearing notice was published in the newspaper on February 14 and February 21 and also posted outside of the 440 Building next to City Hall.
PROPOSED ORDINANCE AMENDMENTS
The proposed ordinance amendments clarify licensing requirements, ensure compliance with State law relating to sales of flavored tobacco products/enhancers, strengthen the City’s operating requirements and enforcement tools for tobacco retailers, and establish clear processes for inspections and compliance. These amendments aim to protect public health, safety, and welfare, reduce youth access to tobacco and nicotine products, and ensure the City is not a safe haven for nefarious business operations. In particular, the amendments maintain existing location buffer requirements while establishing a City-wide cap of 50 (fifty) Tobacco Retailer Licenses to prevent overconcentration and limit future growth of tobacco retailing. The ordinance also clarifies product restrictions, including limits on flavored tobacco products/enhancers and illicit drugs/hazardous substances, and provides for stricter and more narrowly tailored operational standards related to age verification, product display,
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and retailer accountability. The proposed streamlined licensing process and establishment of a clear enforcement framework will improve compliance and provide the City with effective tools to monitor tobacco sales and prohibit unlawful operations.
Together, these updates modernize the City’s tobacco retail regulations, align local policy with best practices in youth tobacco prevention and community health, and ensure compliance with State law.
Density and Location Controls
City Ordinance No. 20-18 N.S. established minimum distance requirements between tobacco retailers and sensitive uses, including schools, parks, and libraries, and required new retailers to be located at least 500 feet from another licensed tobacco retailer and 1,000 feet from youth-populated areas. Retailers operating prior to the 2018 ordinance were allowed to continue as legal nonconforming businesses, provided their licenses were renewed annually without lapse.
Today, nearly all the City’s licensed tobacco retailers are legacy businesses established before 2018 or more recently as part of the ‘Pathway to Compliance’ program adopted by Council in July 2025. Due to the existing buffer requirements, very few current licensed locations in the City would meet the buffer requirements. Because these location standards are already highly restrictive, City staff are not proposing changes to the buffer distances.
Instead, the proposed amendments would establish a City-wide cap of 50 Tobacco Retailer Licenses. This approach allows existing, compliant businesses to continue operating while also placing reasonable limitations on the number of new retailers City- wide. A numerical cap is also straightforward to administer and can be adjusted by the City Council in the future if desired. At full buildout, the cap would equate to approximately one tobacco retailer per 2,250 residents, which is comparable but more restrictive than the limits placed by neighboring jurisdictions based on density population.
City Density Policy Ratio
San Francisco Cap on licenses 1 per 1,634 residents
San Jose None 1 per 1,663 residents
Alameda Limited by
population 1 per 2,500 residents
Berkeley None 1 per 1,433 residents
Petaluma Limited by
population 1 per 2,000 residents
Richmond
(Proposed) Cap on licenses 1 per 2,250 residents
Land Use Approach
February 24, 2026
City staff proposes strengthening the Tobacco Retailer License application and operating standards rather than adding a separate land use permit. The City considered requiring an Administrative Use Permit (AUP) for new tobacco retailers in addition to a Tobacco Retailer License. An AUP is a discretionary land use approval issued by City staff—rather than by the Richmond City Council or the planning commission—that allows a proposed use to proceed if it meets specific criteria set forth in the City’s zoning ordinance. While an AUP could provide additional land use oversight, it would create complications because land use permits typically run with the property rather than the operator. Based on these considerations and public input, City staff instead proposes strengthening the Tobacco Retailer License application and operating standards rather than adding a separate land use permit. This approach is consistent with neighboring jurisdictions.
KEY ELEMENTS OF THE PROPOSED TOBACCO RETAILER ORDINANCE
Purpose and Intent
The ordinance establishes a comprehensive local framework to regulate tobacco retailers, with the goals of protecting public health, reducing youth access to tobacco and nicotine products, addressing community impacts of tobacco sales, and ensures compliance with State law.
Tobacco Retailer License Requirement
All businesses selling tobacco products or electronic smoking devices must obtain and maintain a valid Tobacco Retailer License. Licenses are location-specific, generally non-transferable, and required at all times to operate.
Product Restrictions
The ordinance prohibits the sale of certain tobacco products that are known to appeal to youth, including flavored tobacco products and flavored electronic smoking devices, subject to any exceptions specified in the code. This approach is consistent with State laws, which explicitly prohibits any sale of flavored tobacco products and tobacco flavor enhancers.
Operational Standards
Licensed retailers must comply with clear operating requirements designed to reduce youth access, comply with State law, provide clarity to retailers, and improve accountability. Key operating requirements include:
No self-service displays or mobile sales;
Tobacco products must be kept behind the counter or in locked cases; Clerks must be at least 21 years old to engage in tobacco sales; Mandatory age verification and full compliance with State and federal sales laws; Required posting of age-of-sale and health warning signage; Limits on the display area for tobacco products and paraphernalia, which includes twenty percent sale display limits on new tobacco retailers not licensed prior to the effective date of the ordinance;
Cooperation with City inspections during business hours;
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Prohibition on sales of hazardous substances such as illicit drugs, nitrous oxide, synthetic cannabinoids, and Kratom;
Prohibition of on-site use and consumption;
Prohibition on sales of flavored tobacco products;
Prohibition on sales of cannabis; and,
Clarity in safety, design, and marketing requirements.
License Term, Fees, and Renewal
Licenses are issued for a one-year term and must be renewed annually. Fees are established to recover the City’s costs for administration, education, compliance monitoring, and enforcement.
Enforcement, Suspension, and Appeals
Violations may result in administrative citations, fines, and suspension or revocation of the license, with escalating penalties for sales of flavored tobacco products or repeat violations as provided by State law. Additionally, to comply with State law, confiscation procedures and processes relating to flavored tobacco products are established. The ordinance includes notice, hearing, and appeal procedures to ensure transparency for retailers and due process protections.
Nonconforming Retailers
Retailers that do not meet current location standards may continue operating as legal nonconforming businesses, provided they remain in compliance with all operational requirements, including maintaining their tobacco retailer license without lapse.
Tobacco Retailer License Application Requirements
The ordinance amendments standardize the application process to ensure the City can verify eligibility and compliance before issuing a license. Applicants must provide information on the following:
(1) Business and Ownership Information
Legal business name, doing business as (DBA), address, and contact information
Names and contact information for all owners and operators Identification of a local managing agent, if applicable
(2) Disclosure and Accountability
Identification of all persons with an ownership interest Disclosure of prior tobacco-related violations or license actions, if required Signed acknowledgment of responsibility for complying with all tobacco laws
(3) Site and Operations Information
Description of the type of retail business
Site or floor plan showing tobacco product display areas Confirmation that the location complies with zoning and buffer requirements
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(4) Product and Regulatory Information
Identification of the categories of tobacco and electronic smoking products to be sold
Acknowledgment of compliance with local product restrictions Proof of a valid California Department of Tax and Fee Administration tobacco retailer license
(5) Compliance Agreements
Agreement to post required signage
Consent to City inspections
Certification that employees will be informed of tobacco sales laws
(6) Fees and Certification
Payment of the required license fee
Signature under penalty of perjury that the application is complete and accurate
Ongoing Operational Compliance
As a condition of licensure, retailers must continuously comply with local, State, and federal tobacco laws. Owners are responsible for employee conduct related to tobacco sales, and violations may result in citations, fines, or suspension or revocation of the Tobacco Retailer License.
SYNERGISTRIC POLICIES:
The ordinance amendments are consistent with both the General Plan Land Use Element policy 1.4 and Health and Wellness Element policy 8.2, which seeks to improve the sense of safety for residents and visitors by restricting or prohibiting uses that are incompatible with community needs and priorities, including but not limited to liquor stores and smoke shops.
ENVIRONMENTAL REVIEW:
The ordinance will not cause a direct physical change in the environment, nor a reasonably foreseeable indirect physical change in the environment. This action, therefore, does not constitute the approval of a project under the California Environmental Quality Act (“CEQA”), and it is exempt from CEQA. (Pub. Res. Code § 21065, CEQA Guidelines §§ 15060(c)(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)).
COMMUNITY OUTREACH AND ENGAGEMENT:
Good City Company (Good City) was contracted by the City in November of 2024 to assist City staff in updating the City’s tobacco retailer regulations and permitting process. In that time, Good City, with the support of City staff, developed an existing conditions report outlining the concerning trends in tobacco consumption, current City regulations, the number of licensed and unlicensed tobacco retailers, as well as the
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number and type of violations seen by the tobacco task force enforcement team. The existing conditions report, potential regulations, and enforcement mechanisms were presented to the community at a workshop on February 11, 2025.
Following the community meeting, City staff and Good City presented to the Richmond Neighborhood Coordinating Council on March 10, 2025, and hosted a virtual stakeholder roundtable on March 27, 2025 with thirteen participating local tobacco retailers. Based on additional feedback from community groups, Good City and City staff drafted updates to the tobacco retail license application and renewal process.
A second community meeting was held on April 9, 2025, where the proposed ordinance changes were presented to the community for questions and feedback. Community members had the opportunity to participate in person and virtually. Eleven people participated virtually, and 29 people attended the meeting in person.
CONCLUSION:
Adoption of the amended Tobacco Retailer regulations will strengthen the City’s ability to protect public health, particularly by reducing youth access to tobacco and nicotine products, while providing clear, enforceable standards for retailers. The ordinance establishes a consistent local licensing framework, clarifies operational expectations, and aligns product restrictions and enforcement tools with current best practices in tobacco control. By addressing retailer location, product availability, and day-to-day sales practices, the regulations help curb youth initiation, support compliance with State and federal law, and ensure a level playing field for responsible businesses. Overall, these amendments provide a balanced approach that promotes community health, improves accountability, and equips the City with practical mechanisms to monitor and enforce tobacco retail activities.
DOCUMENTS ATTACHED:
Attachment 1 – Ordinance
Attachment 2 – Redline Version of the Ordinance