City Council and Concurrent Authorities
June 20, 2023

City Council MeetingJune 20, 2023Agenda Item 15.2Tobacco Retailer Ordinance BackgroundJuly 20, 2022: Council Legislation & Environmental Committee provided initial direction to staff to create an ordinance.Committee’s chief concern: addressing access of tobacco products to minorsNovember 15, 2022: The ordinance was first agendizedfor City Council, but was pulled from the agenda by Council for further review at the Committee.February & March 2023: Further revisions at Legislation & Environmental Committee Tobacco Retailer License: OverviewCurrently: No special Citylicense is required to sell tobacco products; only a standard City business license.Proposed Ordinance requires tobacco retailers to:Obtain a Tobacco Retailer LicenseComply with operating regulationsComply with state law (and provide City proof of state licensing)Retailers will be subject to fines & suspension/revocation of their license for violations Tobacco Retailer DefinedAny business that sells tobacco products in the City is a tobacco retailer. Including:Smoke shopsGas stationsGrocery stores/marketsApproximately 272 such businesses within the City.

Tobacco Products DefinedTobacco products include:Any product containing tobacco (e.g., cigarettes, cigars, chewing tobacco, e-liquid/vape juice).Any device that delivers nicotine (e.g., e-cigarettes, vapes, pipes)Tobacco paraphernalia (e.g., rolling papers) License Application RequirementsLicense applications will be provided by the City, and will require:Details on the retailing location (including proof of ownership or landlord acknowledgement that tobacco retailing will occur)Information on individuals with ownership or managerial interests.Proof of State licensing.

Distancing RequirementsNew retailers will not be able to obtain a license within 600 feet of the following:SchoolsPublic parks, playgrounds, and recreational areas.Youth facilitiesOther tobacco retailersException: A tobacco retailer that predates the ordinance is not subject to the 600 foot rule.This exception will cease for a retailer if they fail to renew their license or have the license revoked.

Non-transferability of LicenseLicenses are non-transferable & location specific.If a licensed business seeks to change locations, it will need to apply for a license at the new location.If a licensed business is sold, the new owner must obtain a license for that location.

Operating RestrictionsLimited window obstructionsGraffiti/vandalism abatementPrevention of nuisance on the propertyPrevention of loiteringMust post “No Trespassing” signsCompliance with all local, state, and federal law Penalties for ViolationAny violation may be subject to administrative fines:$1,000 for a 1stviolation in a 5-year period$2,000 for a 2ndviolation in a 5-year period$3,000 for each additional violation in a 5-year period.For violating laws concerning sale of flavored tobacco products and selling tobacco products to minors:Up to 30-day license suspension for a 1stviolation in a 5-year periodUp to 60-day license suspension for a 2ndviolation in a 5-year periodUp to 90-day license suspension, or license revocation, for additional violations Proposed FeesAnnual Tobacco Retail License Application Fee $102 Verification of distance requirements $147 Annual Investigative Fee $234 Appeal Fee - Denial of Permit $102 Effective DateEffective 90 days after passage. Exception: A business that sells tobacco products which predates the effective date of the ordinance will not require a license until their City business license renews.

Flavored Tobacco ProductsCalifornia Senate Bill 793 (2019-2020) (“SB 793”) prohibits the sale of flavored tobacco products statewide, except for three exception categories:Flavored premium cigars: must be handmade, have wrapper made only of tobacco leaf, have no filter/tip/mouthpiece, and cost at least $12/each.Flavored loose-leaf tobacco: tobacco designed for pipe smoking, but not tobacco marketed as “roll your own” cigarette tobacco.Flavored shisha tobacco: tobacco intended to be smoked in a hookah. A retailer using this exception must not permit persons under age 21 onto its premises at any time.

Flavored Tobacco Products cont.Some options for how to address flavored tobacco products under SB 793:(A) No additional prohibitions (the SB 793 exceptions remain)(B) Complete flavor ban (removing all SB 793 exceptions)(C) Remove some, but not all, SB 793 exceptions(D) Eliminate the exceptions at regular retail, but allow sales for on-site consumption at legally operating hookah lounges and cigar lounges.

Tobacco Retailer OrdinanceQuestions