Adding Annual Retail Tobacco License Fee to
the Santa Rosa Master Fee Schedule
November 12, 2024 Jason Nutt, Assistant City Manager 1
TRL Purpose
Licenses provide important public safeguards in the regulation of hazardous and potentially harmful products and
businesses.
• Proactive rather than reactive compliance monitoring
• Improves compliance with business standards and laws
• For tobacco sales, research confirms that TRLs can:
• Reduce sales, access and use of tobacco to underage
youth and young adults
• Reduce sales of illegal products
• Reduce tobacco-related health inequities
• Create a mechanism for policy adoption that is nimble and responsive to our local issues.
• Create an even playing field for tobacco retailers
2 Parks & Schools Buffer - 600 ft
May 2024
3 40 of the 118 (34%)
tobacco retailers are
currently within the 600-
foot buffer between
parks and schools
District 1 – 23 (19%)
District 2 – 12 (10%)
District 3 – 8 (7%)
District 4 – 20 (17%)
District 5 – 27 (23%)
District 6 – 15 (13%)
District 7 – 13 (11%)
TRL Fee Justification
6-20.100 Fee for License. The fee to issue or to renew a tobacco retailer’s license shall be established from time to time by resolution of the City Council. The fee shall be calculated so as to recover the cost of administration and enforcement of this Chapter including, but not limited to, issuing a license, administering the license program,
tobacco retailer education, tobacco retailer inspection and compliance checks, documentation of violations, and
prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this Chapter. All fees and interest upon proceeds of fees shall be used
exclusively to fund the program. Fees are nonrefundable except as may be required by law.
4 TRL Fee Justification
• Per Government Code Section 50076, the TRL fee will not exceed the estimated reasonable cost of providing the
service or regulatory act for which the fee is charged. • The TRL fee is not being levied for general revenue
purposes and is not a special tax as defined in Article 3. 5 of the Government Code.
• The TRL fee and charges described are not taxes as
defined in Article XIIIA, §3 (b) (Proposition 26), of the California Constitution.
5 TRL Fee Justification
• At your July 23, 2024, meeting you authorized the City Manager to enter into a Memorandum of Understanding
(MOU) with the Sonoma County Department of Health
Services (DHS) to manage the TRL program, process and
compliance efforts.
• The MOU will be signed by the City Manager following
the approval of the TRL fee.
• The Board of Supervisors will consider approval on
December 10, 2024.
6 TRL Fee Justification
In anticipation of the MOU approval, DHS has developed a TRL fee and associated justification.
• Administration of TRL License
• Development of TRL application
• Receive, process and issue new and renewal TRL
applications
• TRL license management and tracking
• Provide education to retailers and their employees
7 TRL Fee Justification
• Compliance visits include:
• On-site inspection of retail areas for compliance with State and City regulations, including the recently
adopted additions to Chapter 6-20 of the Santa Rosa
City Code.
• Conducting follow-up on-site inspections as needed to provide retailers an opportunity to correct violations. • Provide referrals and coordinate issuance of violations with Code Enforcement.
• Provide support to Code Enforcement during appeal
hearings.
8 TRL Fee Justification
• Fee will be determined based on the number of State
issued licenses on the date the TRL ordinance was
adopted – September 7, 2024
• Smokeshop = 13
• General Retailer = 105
• Total Retailers = 118
• Fees calculated for both 1 and 2 annual compliance
visits.
• Fees associated with 1 compliance visit between January and June 2025.
• Costs associated with compliance follow-up visits are currently covered through a DHS secured DOJ grant.
9 TRL Fee Justification
• Other Sonoma County jurisdictions conduct 1 annual
compliance visit.
• Figures are shown in more detail in Exhibit A of the Resolution 10 01/25-06/25 1 Annual 2 Annual
Personnel
(FTE)
$35,230.92
(0.23)
$58,515.02
(0.38)
$75,889.35
(0.50)
Operations $2,378.21 $3,492.26 $5,563.50
Indirect (20%) $7,521.83 $12,401.46 $16,290.57
Total $45,130.96 $74,408.73 $97,743.42
Annual TRL Fee $382 $631 $828
Initial 18 Months $1,013 $1,210
Recommendation
It is recommended by the City Manager’s Office
that the Council: 1) hold a public hearing to discuss
adding an annual Tobacco Retail License Fee; 2) by
resolution add an annual Tobacco Retail License
Fee associated with one compliance visit per fiscal
year to the Santa Rosa Fee Schedule as Section
7.07, effective January 1, 2025.
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