TOBACCO RETAIL
LICENSE ORDINANCE
City Council Meeting
November 15, 2022
Agenda Item 16.3
Present Situation
Title 5 of the SMC does not currently regulate tobacco retailers in the City.
The State of California licenses tobacco retailers statewide. The State’s definition of tobacco retailer includes any business that sells tobacco products in any volume.
Currently, there are 272 State-licensed tobacco retailers within the City. Pursuant to the State’s definition of tobacco retailer, these include grocery stores and gas stations in addition to “smoke shops.” Hold a public hearing to approve fees associated with the special tobacco retail license.
• Public notice was published on October 31, 2022.
State-Licensed Tobacco Retailers
within the City of Stockton
Legislation Committee Direction
Draft a proposed ordinance adding a tobacco retail license requirement to Title 5
Ordinance should address the following:
Defining tobacco retailers to prevent change in use
Distance restrictions
Window obstruction
Blight/loitering prevention
Compliance with local, state, and federal law
Flavored Tobacco Regulation [Optional Language for Council Consideration]
Proposed Ordinance – Tobacco Retail
License
Requires a special license to operate in addition to a standard business license
“Tobacco Retailer” means any person or entity whose principal business is selling Tobacco Products, tobacco paraphernalia, or both, as evidenced by 50% or more of floor area and display area being devoted to the sale or exchange of Tobacco Products, tobacco paraphernalia, or both.
Distance Requirement – 600 feet from school, public park, public playground, public recreational area, or youth facility Does not apply to tobacco retailers operating lawfully on the day before the effective date of the ordinance.
Ordinance effective 30 days after adoption
Implementation
Administrative Services will prepare informational materials and forms for applicants.
New Tobacco Retailers will submit an application to ASD Police and Community Development will investigate for compliance with the distance and other ordinance requirements
Existing Tobacco Retailers with business license renewals on or after March 1, 2023, will be asked to fill out the application 60 days before their standard renewal
FY 2022-23 Proposed Tobacco Ordinance
Public Hearing on Proposed New Tobacco Retailer Fees*:
Description Reason Proposed
Amount
Annual Tobacco Retail
License Application Fee
New and renewals, one fee per
application to cover processing costs of
application
$102.00
Verification of distance
requirements
One-time fee, as applicable, to verify
business location is allowable under
Ordinance 5.102.120
$147.00
Annual Investigative Fee
per person
New and renewals, charge for each
owner, officer, copartner, or stockholder
$234.00
Appeal Fee - Denial of
Permit
Ordinance Section 5.102.110 appeal from
suspension or revocation of tobacco retail
license
$102.00
*Does not include standard business license fee and applicable tax.
Flavored Tobacco Regulation
Proposition 31 results were pending at the time this presentation was submitted for publication.
If Prop. 31 is approved, it will cause SB 793 to go into effect which will prohibit the sale of flavored tobacco products state-wide, subject to limited exceptions. In this case, the additional language in the proposed ordinance regarding flavored tobacco products is moot.
If Prop. 31 fails, Council could pass the ordinance with the included optional language which prohibits the sale of flavored tobacco products at “tobacco retailers,” as defined in the ordinance. The same exceptions included in SB 793 would also apply to tobacco retailers in the City.
Recommendation
1) Adopt an Ordinance Amending Title 5, Chapter 5.16, section 5.16.010 and adding Chapter 5.102 to the Stockton Municipal Code (“SMC”) requiring tobacco retailers to obtain a license from the City. 2) Adopt a Resolution approving an amendment to the Fiscal Year 2022-23 Fee Schedule relating to tobacco retail licenses.
3) Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of the ordinance and resolution adopted by the Council.