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Agenda-Item-Number-7-Tobacco Agenda Item Number 7 CITY OF SEBASTOPOL CITY COUNCIL AGENDA ITEM Meeting August 4, 2020 To: Honorable Mayor and Councilmembers From: Vice Mayor Glass City Manager Acting Chief of Police Subject: Ordinance of the City of Sebastopol Adopting a Tobacco Retail License Ordinance to Regulate the Sale and Distribution of Tobacco Products to Protect Minors of the City of Sebastopol /and Discussion and Consideration of Submission of Grant Application for Department of Justice Tobacco Program Grant Recommendation: That the City Council: 1. Approve for Waiving of First Reading and Introduction of Ordinance: Tobacco Retail License Ordinance to Regulate the Sale and Distribution of Tobacco Products to Protect Minors of the City of Sebastopol; and 2. Authorize submission of applicant of grant application to the Department of Justice for Funding qualifying tobacco enforcement purposes Funding: Currently Budgeted: _____ Yes _______ No XXX___ N/A Net General Fund Cost: $ Amount: $ Account Code/Costs authorized in City Approved Budget_AK___ (verified by Administrative Services Department) INTRODUCTION: This item is to request that the City Council Approve for Waiving of First Reading and Introduction of Ordinance: Tobacco Retail License Ordinance to Regulate the Sale and Distribution of Tobacco Products to Protect Minors of the City of Sebastopol; and Authorize submission of applicant of grant application to the Department of Justice for Funding qualifying tobacco enforcement purposes. BACKGROUND: Rising youth tobacco usage, especially with electronic smoking devices (vaping), has encouraged municipalities to pass more restrictions banning certain types of tobacco and tobacco products. On February 4, 2020, the Gravenstein Health Action Chapter (now Gravenstein Health Action Coalition) made a presentation to the City Council titled: Youth Nicotine Use in Sebastopol and Retail Policy Options. At the conclusion of the presentation, Council gave direction to Staff to work with the community led by Gravenstein Health Action to prioritize the elements of a policy and bring it back to them to prepare for an ordinance. On July 7, 2020, the City Council received a second presentation from Gravenstein Health Action Coalition on Tobacco Retail Licensing with a request for the City to move forward on the preparation of a tobacco retail license ordinance for the City of Sebastopol. Agenda Item Number 7 City Council Meeting Packet of August 4, 2020 Page 1 of 43 Agenda Item Number 7 The ordinance is before the City Council tonight for waiving of first reading and introduction of ordinance as well as recommending the submission of an application to the California Department of Justice for grant funding for qualifying tobacco enforcement purposes. DISCUSSION: Tonight’s item is to propose an ordinance, Tobacco Retail License (TRL), which would be a versatile regulatory strategy that can ensure compliance with local business standards, reduce youth access to tobacco, and limit the negative public health effects associated with tobacco use. A strong ordinance includes, at a minimum, four foundational components: 1. A requirement that all tobacco retailers obtain a license and renew it annually; 2. An annual licensing fee to fund administration and enforcement; 3. Meaningful penalties for violators through fines and penalties, including possible suspension and revocation of the license; and 4. A provision stating that any violation of existing local, state, or federal tobacco laws constitutes a violation of the TRL. It is the intent of the City, in enacting this ordinance, to ensure compliance with the business standards and practices of the City and to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those which prohibit or discourage the sale or distribution of tobacco and nicotine products to youth, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalties provided therein. This ordinance is consistent with the City’s General Plan’s Community Health and Wellness Goal 6,”Reduce the harmful impacts of alcohol, tobacco, and drug use on individuals, their families, and the larger community.” General Plan Action CHW 6b includes consideration to “review and revise, as necessary, the Sebastopol Municipal Code to regulate the sale and distribution of ‘e-cigarettes’ in the same manner as traditional cigarettes and other tobacco products.” The Council tonight is requested to consider the entire ordinance, but specifically three items in the ordinance as listed below: 1. Distance around youth sensitive locations - 1,000 ft would be consistent with the County. Page 21 Section 8.06.070D. 2. Minimum pack size for little cigars - there are several Sonoma County jurisdictions that have a minimum of 5, however the statewide trend is 10 or even 20 - recommendation is 10 minimum pack size with a minimum price of $10 which means $1/little cigar. Page 20 Section 8.06.060 E. 3. The County currently has a minimum price of $7 for a pack of cigarettes, but since it was established, the State sales tax has increased $2, so it is our understanding that the County will be looking at a minimum of $10/ pack of cigarettes as well. Page 21 Section 8.06.060 F. On a parallel path, City staff will be submitting a grant application to the California Department of Justice for potential funding for qualifying enforcement purposes. In accordance with the State Budget Act and the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Act), as added by Agenda Item Number 7 City Council Meeting Packet of August 4, 2020 Page 2 of 43 Agenda Item Number 7 Proposition 56, the California Department of Justice (“Department”) intends to distribute $28.5 million in FY 2020-21 to eligible local law enforcement agencies for qualifying tobacco enforcement purposes. Any local government or local government agency within the State of California that has authority to enforce tobacco-related state laws or local ordinances is eligible to receive funds. Grant funds may be used to support and hire law enforcement officers for programs that include, but are not limited to, enforcement of state and local laws related to the illegal sales and marketing of tobacco, including e-cigarettes, to minors. Grant funds will be awarded on a competitive basis in accordance with the Department’s funding priorities. Grantees may use grant funds to enforce a local ordinance or state law related to the illegal sale and marketing of tobacco products, including e-cigarettes, to minors and youth including, but not limited to: • Retailer compliance checks • Retailer training programs • Public education outreach • Parent engagement and education • Tobacco retail license inspections • Preventing and deterring use of tobacco products on school premises • Hiring a school resource officer to focus on tobacco issues If selected, the Police Department will return to the City Council for approval of a Resolution authorizing the City to enter into a contract with the State and identifying the person authorized to execute the contract for the City. Adoption of the ordinance creates a local licensing system for tobacco retailers which is appropriate to ensure that retailers comply with tobacco control laws and business standards of the City to protect the health, safety, and welfare of our residents. PUBLIC COMMENT: City staff provided notices to tobacco retailers of the proposed agenda item. Public comments received as of the writing of this staff report have been distributed to the City Council and staff are attached to this report. PUBLIC NOTICE: This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. A newspaper notice was published in Sonoma West Times and News on July 23, 2020 as required by State Law. FISCAL IMPACT: There is no direct fiscal impact associated with the recommended action tonight. However, an annual licensing fee will need to be decided by the City Council and approved by Resolution after approval of ordinance. RECOMMENDATION: It is recommended that the City Council Approve for Waiving of First Reading and Introduction of Ordinance: Tobacco Retail License Ordinance to Regulate the Sale and Distribution of Tobacco Products to Protect Minors of the City of Sebastopol; and Authorize submission of applicant of grant application to the Department of Justice for Funding qualifying tobacco enforcement purposes. Agenda Item Number 7 City Council Meeting Packet of August 4, 2020 Page 3 of 43 Agenda Item Number 7 Attachments: 1. Ordinance 2. Radius Map 3. Tobacco Retail License Recommendations For the City of Sebastopol (updated) 4. Questions From Sonoma County LLAs 5. Public comments Agenda Item Number 7 City Council Meeting Packet of August 4, 2020 Page 4 of 43 Agenda Item Number 7 CITY OF SEBASTOPOL ORDINANCE NO. ________ AN ORDINANCE AMENDING TITLE 8 (“HEALTH AND SAFETY”) OF THE SEBASTOPOL MUNICIPAL CODE TO ADD CHAPTER 8.06 (“TOBACCO RETAIL LICENSING”) Sections: 8.06.120 LICENSES NONTRANSFERABLE 8.06.010 TITLE 8.06.130 LICENSE CONVEYS A LIMITED, 8.06.020 FINDINGS AND PURPOSE CONDITIONAL PRIVILEGE 8.06.030 DEFINITIONS 8.06.140 FEE FOR LICENSE 8.06.040 GENERAL REQUIREMENTS AND 8.06.150 COMPLIANCE MONITORING PROHIBITIONS 8.06.160 SUSPENSION OR REVOCATION OF 8.06.050 SALE OF FLAVORED TOBACCO LICENSE PRODUCTS PROHIBITED 8.06.170 TOBACCO RETAILING WITHOUT A 8.06.060 TOBACCO
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