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HomeMy WebLinkAbout _ 9.1(b)--Consider adopting a tobacco retail ordinance GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 15, 2025 FROM: Jason Gibilisco, Management ITEM NO. 9.1(b} Assistant to the City Manager ***APPROVED BY*** 7�aso Ci e c�, a�aa�caaiu t t�sivi�i�t tc�ilr�C itY�7t7r�n�ux tt27'2(�25 t�S�8 c1 �, 5S �F 1��9/�Q�,`+ jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 9.1(b)--Consider adopting a tobacco retail ordinance in the City of Redding. Recommendation Authorize and approve the following: (1) Offer Ordinance amending Redding Municipal Code Title 6 (Business Taxes, Licenses, and Regulation), Chapter 6.13 (Redding Municipal Code Tobacco Retailing) adopting a Tobacco Retail license for first reading by title only, waive the full reading; (2) Authorize the City Attorney to prepare a summary ordinance and the City Clerk to publish the same in accordance with law; and (3) Find that the adoption of this ordinance is exempt from environmental review pursuant to California Environmental Quality Act guidelines 15060(c)(2) and 15061(b)(3) and further find that the passage of this ordinance will have no foreseeable direct or indirect physical change in the environment. Fiscal Impact If the ordinance is adopted, all tobacco retailers will be required to pay a fee of$1,176.63 - the fee is based on Code Enforcement administering the Tobacco Retail License Program that includes 119 tobacco retailers operating in the City of Redding (City). The program fees will fund one, fu11-time Neighborhood Preservation Officer and a half-time Administrative Assistant to operate the Tobacco Retail License Program. The fee could increase or decrease if the number of tobacco retailers is found to be more or less than ]19. Alternatzve Actzon The City Council (Council) may choose not to adopt an ordinance regulating tobacco retailers; could direct staff to alter the licensing ordinance; or may provide alternate direction to staff. Report to Redding City Council July 9, 2025 Re: 9.1(b)--Consider adopting a tobacco retail ordinance Page 2 Background/Analysis On June 17, 2025, staff presented a tobacco-oriented retailer ordinance to the Council. This ordinance was specific to licensing smoke and vape shops only. The Council did not adopt the ordinance and gave further direction to staff to bring back a licensing ordinance that incorporates all tobacco retailers and includes a location restriction for new tobacco retailers to be 600 feet away from schools. Staff worked with Code Enforcement and the City Attorney's Office to edit the previous draft tobacco retailing ordinance (draft ordinance). Under the draft ordinance, all tobacco retailers will be required to obtain a Tobacco Retail License. The distance requirement of operating within 600 feet of a school will only apply to new tobacco retailers who operate following adoption of the draft ordinance. Existing tobacco retailers will be allowed to continue to operate within 600 feet of a school as long as they submit a complete and accurate tobacco retail application and pay the required fee within 60 days of ordinance adoption. Following adoption, they will need to remain in good standing to continue to operate such as not having their tobacco retail license revoked due to violations. Staff defined school as any grades between kindergarten through grade 12 - this includes both public and private schools. The draft ordinance allows for enforcement, inspections, and education to all tobacco retailers. The sale of flavored tobacco prod�ucts will be illegal in the draft ordinance and also includes that no tobacco products are to be sold to a person under the age of 21. This allows for the City to issue violations referencing the Redding M�unicipal Code instead of State Code. Pending adoption of the ordinance, staff wi11 bring back a resolution for adoption of a Tobacco Retail Licensing program and a resolution for adoption of administrative fines. Envir�onmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City ManageN Goals � Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments ^Draft Tobacco Retail License Ordinance Previous Staff Report from September 1'7, 2024 Previous Staff Report from March 18, 2025 Previous Staff Report from June 17, 2025 DRAFT NEW ORD/NANCE ORDINANCE NO. AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 6 (BUSINESS TAXES, LICENSES AND REGULATIONS) OF THE REDDING MUNICIPAL CODE BY ADDING CHAPTER 6.13 (TOBACCO RETAILING) RELATING TO THE REGULATION OF TOBACCO RETAILERS WHEREAS: A. The City Council finds that a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards to protect the health, safety, and welfare of our residents; and B. Approximately 480,000 people die in the United States from smoking-related diseases and exposure to secondhand smoke every year, making tobacco use the nation's leading cause of preventable death;' and C. The World Health Organization (WHO) estimates that tobacco kills 8 million people and causes over 1.4 trillion dollars in economic damage each year;'� and D. 5.6 million of today's Americans who are younger than 18 years of age are projected to die prematurely from a smoking-related illness;' and E. Tobacco use is the number one cause of preventable death in California�'� and continues to be an urgent public health issue, as evidenced by the following: • 40,000 California ad�ults die from their own smoking annually;'° • More than 25% of all adult cancer deaths in California are attributable to smoking;" • Smoking costs California $13.29 billion in annual health care expenses, $3.58 billion in Medicaid costs caused by smoking, and $10.35 billion in smoking-caused productivity losses;°' � Tobacco use can cause disease in nearly all of the organs of the body and is responsible for 87% of lung cancer deaths, 32% of coronary heart disease deaths, and 79% of all cases of chronic obstructive pulmonary disease in the United States." and F. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to persons under 21 years of age except active duty military personnel who are 18 years of age or older(California Pena1 Code § 308); and G. State law requires that tobacco r�tailers check the identification of tobacco purchasers who reasonably appear to be under 21 years of age (California Business & Professions Code § 22956) and provides procedures for using persons under 21 years of age to conduct onsite compliance checks of tobacco retailers(California Business&Professions Code § 22952); and H. Despite the state's efforts to limit youth access to tobacco, youth are sti11 able to access tobacco products, as evidenced by the following: � In California, research indicates over 6'7% of current and former adult smokers started by the age of 18 and almost 100% start by age 26;`�' • In California, from 2017 to 2018, approximately 13% of high school students reported using tobacco;°"' � Unless smoking rates decline, an estimated 441,000 of all California youth who are alive today will die prematurely from smoking-related diseases;' • In 2017, 22.8% of high school students in California had tried cigarette smoking;'X • Between 2014 and 2018, electronic smoking device use among California youth increased from 14.1%to 46.2%;X and I. In 2023, 41.2% of surveyed Shasta County high school students reported having previously used tobacco, the highest level of tobacco use recorded in the state;X' and J. In 2023, 31.6% of surveyed Shasta County high school students stated that they vape to relax or relieve stress and anYiety;X' and K. In 2023, 16.8% of surveyed Shasta County high school students reported currently using tobacco products (including vapes, cigarettes, cigars, little cigars and cigarillos, smokeless tobacco, heated tobacco products, hookah and nicotine pouches);X� and L. In 2023, Shasta County had the highest level of current tobacco use by high school students in the State;X' and M. In 2023, 63.2%of currently vaping high school students reported that they believed it was easy to obtain vapes and cigarettes from stores;"` and N. In 2023, 32.6% of surveyed Shasta County students reported buying vapes, pods, or e-liquid directly from a tobacco or smoke shop;�' and O. In 2023, 23.4% of surveyed Shasta County students under the age of 18 reported asking someone to buy them a vape,pod or e-liquid;"' and P. Both youth and adult tobacco users are more likely to also use cannabis;"'�."�" and Q. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 21 years of age is illegal (California Busin�ss & Professions Code § 22952, California Penal Code § 308); and R. The tobaeco industry encourages youth and young adult tobacco initiation through predatory targeting,X'° as evidenced by the following: • Tobacco companies target young adults ages 18 to 24 to increase their frequency of tobacco use and encourage their transition to habitual users;"° • Tobacco industry documents state that if"a man has never smoked by the age of l8, the odds are three-to-one he never will. By age 24, the odds are twenty-to-one;"X°� • The tobacco industry spends an estimated $496 million annually to market tobacco products to Cali�ornia residents;`" and S. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk(California Business &Professions Code § 22962); and T. State law prohibits the sale of"bidis" (a type of hand-rolled filterless cigarette) except at those businesses that prohibit the presence of minors (California Penal Code § 308.1); and U. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of"roll-your-own" tobacco in packages containing less than six-tenths of an ounce of tobacco (California Penal Code § 308.3); and V. State law prohibits public school students from smoking or using tobacco products while on campus,while attending school-sponsored activities, or while under the supervision or control of school district employees (California Ed�ucation Code § 48901(a)); and W. The City has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by persons under 21 years of age; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to persons under 21 years of age; and in protecting youth and underserved populations from the harms of tobacco use. California courts in Cohen v. Board ofSuper�viso�s (Cal. 1985) 40 Ca1.3d 277, B�avo Vending v. Citv ofRancho MiNa�e (4�h Dist. 1993) 16 Ca1.App.4th 383, and Prime Gas v. Cit�of Sacramento (3rd Dist. 2010) 184 Ca1.App.4th 697,have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law. State law authorizes local tobacco retailer licensing laws to provide for the suspension ar revocation of the 1oca1 tobacco retailer license for any violation of a state tobacco control law (California Business &Professions Code § 22971.3); and X. Reguiring tobacco retailers to obtain a tobacco retailer license will not unduly burden legitimate business activities of retailers who se11 tobacco products to adults but will,however, allow the City council to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco control and youth tobacco access laws, as evidenced by the following: � Tobacco products are the number one seller in U.S. convenience stores, and in 2018, they generated an average of$523,084 in sales per store;X°" � Systematic scientific reviews indieate that merchant compliance with youth tobacco sales laws reduces the rate of tobacco use among adolescents;"°"'.""` � Studies found increased retailer compliance and reduced tobacco sales to youth following iinplementation and active enforcement of youth tobacco sales laws paired with penalties for violations;XX.XX' • A review of 41 California communities with strong tobacco retailer licensing ordinances �ound that youth sales rates declined in 40 of these communities after the ordinances were enacted, with an average 69% decrease in the youth sales rate.�"' 'U.S.Department of Health and Human Services. The Health Consequences of Smoking: 50 Years of Progress.A Report of the Surgeon General.Aflanta,GA:U.S.Deparhnent of Health and Human Services,Centers for Disease Control and Prevention,Narional Center for Chronic Disease Prevention and Health Promotion,Office on Smoking and Health. 2014.Available at:hYtps://www.ncbi.nlm.nih.�ov/books/NBK179276/pdflBookshelf NBK1792�6.pdf. "World Health Organization. WHO RepoYt on the Global Tobacco Epidemic, 2019: Offer Help to Quit Tobacco Use. 2019.Available at: https://a�ps.who.int/iris/handle/10665/326043. `ll Califoriva Departnzent a�f Public Health, Califorzzia Tobacco Control Pragram.The#1 Preventable Cause of Deat,h.htt�s:/1tob�ecofreeea.e�mlhealth/t�obaeeo-is-the-nuinbar-one-preventable-eause-of-death. `"Centers for Disease Contral and Prevention.Best P�actzces foY CompYehensive Tobacco Cont�al Prog1^arns- 2014.U.S. Depart�z�ent of I�ealth and Human Servie�s, Centers far Disease Caiztrol and Preventioiz,National Center for C'l�ronic Disease l�rcver3tion and Nealth I'romc�tion,Of�cc on Smokin�;and Hcalth_ 2014.Available at: https://www,cdc.�c�v/tobaccalstateandcommuni /best piactices/pdf�I2014Ic�inprchensivc.pdf. °Loi-tet-Tieulent J,�odin�;�auer A, Sicgel RL,�t al. ��atc-L,ev�l Cancer Mortafity A��ributablc to Cigarette Smoking in the United States.JAMA Intern Med. 2f?16;176(12):1792-179�. doi: 10,1QOlJjamaintcrnmed.2016.6530. "'Campaign for Tobaeco-Pree Kids. Thc�'all of T�bacc�in Califar�nia. h1t�s:llwww.tobaecafreekids.ar�l�robleinl�oll-us/ealifornia. °��California Tabaeeo Control Progran�. C�czlifornia Tobacco Facts and Figures 2Q16.Saeramento,CA: California L)epartment of Publie Health. 2016. ""'California Tobacco Contiol Plogram. Califor�nia Tobacco Facts and Fi�ures 2019. Saciamenta,C�: California I�epartment of Publie I�ea11h. 2019.Available at: https:llwww.edph.ca.gov/Programs/CCDI'HPII�CI�ICICTC�ICDI'�3°/Q20I�oeument°1o20Library/ItesearehandEvalua tion/Factsand�'igureslCATobaecc�FactsandFigures2019.pdf. "`Kann L,Mc1Vlaraus T,Harris W�,et al. ��uth Rislc Behavior Surve�llance United S�ates,2�17.MN�YYR Sur�veill Summ�. 20I8;67(8):l-1 l4 a�nd Supplementary Tables 52-93.doi: 14.15585/mmwr.ss67�8a1. X Lin�,Baiocchi M,Halpern-Felsher B.L�11gi�udinal t��ends in e-cigarEtte devices used by Californian youth,2014— 2Q18.Addictl3ehc�v. 2420,108:1064�9. doi: 10.1416Ij.addbeh202Q106459. �'Cladfelter,R.,I>u�ra,L. M.,�radfield,B.,Russsll,s.,Levine,F3.,&Von 7aglinsky,A. (2f)23�.Annual results report f�r flze C�lifornia Youfl1 Tobacco Survey 2023.I2TI I�ztern�tianal. X"Richter L,Pugh BS, Smith PH,Ball SA. The c�-occurrence of nicotine and other substance use and addiction among youth and adults in the United States: �m�lications foi research,praetice,and�olicy.Am J Dru�Alcahol Abuse. 201'7;43(2):132-145. doi: 10.1080100952990.2016.11935ll. X"'Canway KI',Green VR,Kasza KA,et al. C;�-accurrenee of Tobacco Produel Use, Substance Use,and Mental Health Problems Amang Youth:Findings From Wave 1 (2013-2014)of the Pc>pulation Ass�ssment of Tobacco and Health(PAT�I) Study.Addict�ehav. 2618;'76:20�-217.doi: 101016/j.addbeh.2017.08.009. X"'United States v.Philip Morris USA,Inc.449 F.Supp.2d 1 (D.D.C. 2006)aff d in part,vacated in part, 566 F.3d 1095 (D. C. Cir.2009),and order clarified,778 F.Supp.2d 8(D.D.C. 20l 1). X"Ling PM,Glantz 3A. Why and How the Tobacco Industry Sells Cigarettes�o Young Adults: Evidence Flon1 Industly L)oc�anents.Am.II'ubli�c I�calth.2Q02;92(6}908-916. doi: 10.21051ajph.92.6.908. X�Burrows,D.�, "Estimated Chaizge in IPZdustry Trei7d Following Federal Excise Tax I�lcrease."UC'SF Library Truth Tobacco Indtzstry I}ocuments. Date 1V1od.Industry,Apr. 17,2012: htt�s:/1www.industrydoeun�entslibrary.ucs£edu/tobaccoldoeslm1nw00�4. X"'National Assaciation of Convenience Stores. U.S. Converizence StoNe Count.Available at: htt�s:{lwww,convenience.or�JReseazchlFaetSheetslSco�eoflndustry/IndustrySt�areCount; Statista.In-str�re rrr�erchandise sales�f con�venienee stores in the Ulzited,States za��201 b, by produet catego�^y.Availablc at: https://www.statista.ccam/statis�ic�/30�783/usc<>nvenience- stores-u�-stc�re-m�rchandis�-saI�s-b -y cate�ory (Cigarettes+C�ther Tobacco Products Sales=$81.056 billion). X""'U.�.Department of F�ealth and�Iuman�ervices.Preventing Tobaeco Use Araiong Yauth and Young Acla�Zts:A Repo�t of the SuNgeon �ene�al.Atlanta,C�A:U.S.I�epartment of Health�nd Human Services,Cen�ers fc�x I?isease Cant�•c�l and Prevention,National Center for Chr�nic I�isease Prevention and�Iealtl�Proinotion,Office on Sinolcing and Health.2022.Available at:https:/1www.ncbi.nlm.nih.�ov/l�c�c�lcs/NBK9R237/pdfl�ookshelf NBK9923'7.pdf. X'X DiFranza JR.Which interventions a�air�st tl�e sale of tobaccc�to Ininors can be expec�ed to redti�ce smoking? fiab Cont�•ol, 2012;21.436-442.dc�i: 10,1136/tobaccocc�i�trol-2011-050145. XX McLaugl�lin L Lzcense to Kill?: Tabacco Retailer Licensing as an Effecti��e Enforcen2ent Taal, Tabacco Contrcal Lcgal C'c�nsartiuln, 201Q.Available at: http://www.publichealthlaweer�ter.org/sitcsldcfault/fil�sh-es�urccs/tcic-syn- retailer-2010.pdf. XX'Ins�itute caf 1Vledicine.Public Health Implicatiorzs€af Raisin�g the Minzmum flge€af Legal,4ccess to Tobacco Produets. Washingto�z,DC; Thc Na�ional Acadelnies Press.201 S.Availablc at: https:/Iwww.n�p.eduleatalag/189971publie-health-iinplieations-of-raisina-the-�niizimum-a�e-of-l�gal-access-to- tobacca-�roduets. X"��Tl�e Ameriean Lung Assoeiation ll1 California Center for Tobaeeo Poliey and C?rganizing. Tobacco d2etazler Liceaising is Effective. 201�. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS: Seetion 1. Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) is hereby amended by adding Chapter 6.13, to read as follows: 6.13 —TOBACCO RETAILING 6.13.010 Purpose and intent. It is the intent of the City, in enacting this Chapter, to ensure compliance with the business standards and practices of the City, to encourage responsible tobacco retailing, and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco and nicotine products to youth. This Chapter is not intended 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. 6.13.020 Definitions. (1) "Arm's length transaetion" means a sale in good faith and for val�uable consideration that reflects the fair market value in the open market b�tween two informed and willing parties, neither of whom is under any compulsion to partieipate in the transaetion. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this Chapter is not an arm`s length transaction. (2) "Cannabis"has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. (3) "Cannabis Product" has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. (4) "Cannabis Retailer" means any retail establishment in which cannabis or cannabis products are sold or offered for sale to persons that do not hold a license to engage in a commercial cannabis activity issued by the State of California in accordance with the Business and Professions Code Section 26000 et seq.,as that section may be ainended�rom time to time. (5) "City" means the City of Redding. (6) "City Manager" means the manager of the City as appointed by the City Council in accordance with the City's Municipal Code, or the City Manager's designee. (7) "Department" means any City division or department charged with enforcement or administration of the provisions of this Chapter. (8) "Director" means Chief of Police or the director of the Department of Development Services, the director's designee, or such other director as may be designated by the City Manager to administer the provisions of this Chapter. (9) "Flavored tobacco product" means any tobacco product that imparts one or more of the following: (A)A taste or odor distinguishable by an ordinary consumer, other than the taste or odor of tobacco, either prior to or during the consumption of such tobacco product, including but not limited to tastes or odors relating to any fruit, chocolate, vanilla, honey, candy,cocoa, dessert, alcoholic beverage,mint,wintergreen,menthol,herb, or spice; or (B)A heating, cooling, or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product. (10) "Lapse" means the cessation or expiration of a Tobacco Retail license due to the failure to renew it within the required time frame or the loss of eligibility for the Tobacco Retail license. A Tobacco Retaillicense is considered lapsed if the licensee does not complete the necessary steps to renew or maintain the Tobacco Retail license,resulting in the license no longer being valid or active. This does not include situations in which the license is temporarily suspended. (11) "License" means a Tobacco Retail license issued by the City pursuant to this Chapter. (12) "Licensee" means any proprietor holding a Tobacco Retail license issued by the City pursuant to this Chapter. (13) "Manufacturer" means any person, including any repacker or relabeler, who manufactures, fabricates, assembles, processes, or labels a tobacco product; or imports a finished tobacco product for sale or distribution into the United States. (14) "Owner" means any of the following: (A)A person with sole or aggregate ownership in the Tobacco Retail business applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance; (B)The chief executive officer of a nonprofit, Tobacco Retailer business, or other entity; (C)A member of the board of directors of a nonprofit, Tobacco Retailer business, or other entity; (D)The trustee(s) and all persons who have control of the trust and/or the Tobacco Retailer business that is held in trust; (E)An individual who participates in the direction, control, or management of the person applying for a license. Such an individual includes,but is not limited to, any of the following: a. A general partner of a Tobacco Retailer business that is organized as a partnership; b. Anonymous member manager or managing member of a Tobacco Retail business that is organized as a limited liability company; c. An officer or director of a Tobacco Retailer that is organized as a corporation; d. Any individual who assumes responsibility for the license. (15) "Permanent Revocation" means permanent invalidation of a Tobacco Retailer license, which results in the license holder being prohibited from operating as a Tobacco Retailer at the licensed location. This action is final and not subject to reinstatement unless specifically authorized after a successful appeal. Once a Tobacco Retail license is permanently revoked, the licensee is no longer eligible to operate under that license at the location, and no further renewal or reissuance of the license wi11 be allowed unless new application requirements are met. (16) "Person" means any individual, firm, partnership, joint venture, limited liability company, nonprofit organization, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, state, county, city, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit. (17) "Proprietor" means a person with an ownership or managerial interest in a business. A managerial interest shall be deemed to exist when a person has or does have or shares ultimate control over the day-to-day operations of a business. (18) "Retailer" means a person who engages in this state in the sale o�cigarettes or tobacco products directly to the public from a retail location. Retailer includes a person who operates vending machines f'rom which cigarettes or tobacco products are sold in this state. (19) "Sale" or "sell" means any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever. (20) "School"means a private or public kindergarten, elementary, middle,junior high or high school. (21) "Self-service display" means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the tobacco retailer or the tobacco retailer's agent or employee and without a direct person-to-person transfer between a member of the public and the tobacco retailer or tobacco retailer's agent or employee. A vending machine is a form of self-service display. (22) "Temporary Suspension" means temporary cessation of a Tobacco Retailer license during which the retailer is prohibited from operating their business for a specified period of time. This suspension is typically imposed as a penalty for noncompliance with applicable laws or regulations and can be lifted once the licensee has met all requirements for reinstatement. A temporary suspension does not result in the permanent loss of the license,and the retailer may resume business once the suspension period ends or the license has been reinstated. (23) "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. (24) "Tobacco Product" means any of the following: (A) A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including,but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, or snuff. (B) An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including,but not limited to, an electronic cigarette,cigar, pipe, or hookah. (C) Any component, part, or accessory of a tobacco product, whether or not sold separately. "Tobacco product"does not include a product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where the product is marketed and sold solely for such an approved purpose by this Chapter. (25) "Tobacco Retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco products or tobacco paraphernalia. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. (26) "Tobacco Retailing" means engaging in any of those activities of a Tobacco Retailer. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered far sale, exchanged, or offered for exchange. 6.13.030 License required. It shall be unlawful for any person to engage in Tobacco Retailing unless under and by authority of a valid, unexpired, unsuspended, unrevoked Tobacco Retailer License issued pursuant to this Chapter for each location at which tobacco retailing is to occur. 613.040 General Reguirements and Prohibitions. A. Operating regulations and conditions. (1) The provisions of this section shall constitute terms and conditions applicable to each Tobacco Retail license issued by the Director. (2) The provisions of this section sha11 also constit�ute operating regulations that are applicable to each holder of a Tobacco Retail license issued pursuant to this Chapter. (3) It shall be unlawful for any person or entity engaged in the retail sale of tobacco products,regardless of the nature of the business or whether they are licensed under this Chapter, to violate any provision of this Chapter. B. Lawful Business Operation. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued or not issued,it shall be a violation of this Chapter for an owner,licensee, ar any of the licensee's or owner's agents or employees, to violate any 1oca1, state, or federal law applicable to tobacco products, tobacco accessories, or tobacco retailing. C. Display of License. Each Tobacco Retailer license shall be prominently displayed in a publicly visible location at the licensed location at all times. D. Minimum Legal Sales Age. 1. N�o person engaged in tobacco retailing shall sell a tobacco product to a person under twenty-one years of age exeept to aetive duty military personnel who are 18 years of age or older pursuant to California Penal Code § 308. 2. No person engaged in tobacco retailing shall sell a tobacco product to another person without first verifying by means of government issued photographic identification that the recipient is at least 21 years of age. E. Self-Service Displays Prohibited. Tobacco Retailing by means of a self-service display is prohibited. F. Mobile Vending. No license may issue to authorize tobacco retailing at other than a fixed licensed location. No tobacco retail license wi11 be issued to a moveable place of business. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to engage in the delivery sale of tobacco products or to knowingly or recklessly sell or provide tobacco products to any person that intends to engage in the delivery sale of the tobacco product in the City. G. Business License. In addition to the Tobacco Retail license, any Tobacco Retailer must have a valid business license as required by Title 6. H. Limits on eligibility for a Tobacco Retailer license. (1) No Tobacco Retailer shall be located within six hundred feet of a school providing instruction in kindergarten or any grade levels one through twelve, as measured in a straight line between the boundary lines of the parcel of the school and the boundary lines of the parcel of the License applicant's proposed business location. (2) Notwithstanding subsection 1 of this section, a Tobacco Retailer operating lawfully on the date the ordinance codified in this Chapter is adopted that would otherwise be eligible for a Tobacco Retailer license for the location for which a license is sought may receive or renew a license for that location so long as all of the following conditions are met: A. A complete and accurate application is submitted to the City within 60 days of the date this ordinance is adopted; B. The license is timely obtained, maintained, and renewed without lapse or permanent revocation(as opposed to temporary suspension); C. The Tobacco Retailer has not experienced a business closure of 60 or more consecutive days to include the 30-day period immediately preceding the effective date of this ordinance; D. The Tobacco Retailer maintains the right to operate the business under a11 other applicable laws; E. The Tobacco Retailer has not substantially changed the business premises ar business operation within 60 days of the date the ordinance codi�ed in this Chapter is adopted. A substantial change to the business operation includes,but is not limited to, the transferring of a location: (1) To a new proprietor(s) in an arm's length transaction; or (2) For which a significant purpose is avoiding the licensing requirements of this Chapter. F. If the City determines that a Tobacco Retailer has substantially changed their business premises or operation and the Tobacco Retailer disputes this determination, the Tobacco Retailer bears the burden of proving to the Department by a preponderance of evidence that such change(s) do not constitute a substantial change. I. Compliance inspection. The Director, the Chief of Police and any City official charged with enforcing the provisions of this Code shall have the power and authority to enter any business engaging in tobacco retailing during regular business hours to inspect the premises and to determine compliance with the provisions of this Chapter. (1) Should any inspection reveal noncompliance with any of the provisions of this Chapter and should reinspection be needed to determine compliance, the cost of any such reinspection shall be billed to the owner of the premises, the operator of the business engaging in tobacco retailing, and/or the holder of the Tobacco Retailing license in the amount set forth in the schedule of fees established by resolution of the City Council. (2) Prior notice of an inspection, investigation,review, or audit is not required. (3) It is unlawful and cause for immediate denial, suspension, or revocation of a license for any licensee, property owner, proprietor, landlord, lessee, tobacco retailer, and/or its owner, agent, or employee to refuse to allow, to impede, to obstruct, to delay, or to otherwise interfere with an inspection, investigation,review, or audit. (4) When a requirement is established pursuant to this Chapter for an inspection and/or copy of a record, the record sha11 be delivered immediately upon demand by City personnel. J. Flavored tobacco products. (1) It shall be unlawful for any tobacco retailer to se11 any flavored tobacco product. (2) Presumptive Flavored Tobacco Product. There shall be a rebuttable pr�sumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has taken action directed to eonsumers that would be reasonably expected to cause consumers to believe the tobacco product is a flavored tobacco product. Any communication by or on behalf of the manufacturer or retailer of a tobacco product that such tobacco product imparts a taste or odor other than the taste or odor of tobacco, and/or that imparts a heating, cooling, or numbing sensation, eonstitutes presumptive evidence that the tobacco product is a flavored tobacco product. This includes but is not limited to public statements that a product is flavored, such as describing the product as "chill," "ice," "fresh," "arctic," "sweet," "spicy," or "frost." K. Other legal duties. (1) Each Tobacco Retailer shall: A. Comply with all applicable laws and ordinances governing the sale of any tobacco products or tobacco paraphernalia; B. Comply with all conditions imposed by the Director as part of the tobacco retail license; and C. Comply with all conditions imposed by any other permit or license required for a business engaging in tobacco retailing. (2) Each Tobacco Retailer, and any other person(s) responsible for the operation of the business engaging in tobacco retailing, excluding the City, its agents, officers and employees, shall be jointly and severally liable for: A. Any violation of this Chapter; B. Any violation of the terms of the Tobacco Retail license; C. Any violation of any other license or permit required for the business engaging in tobacco retailing; and D. Any violation of any other applicable law that arises out of the sale of tobacco products or tobacco paraphernalia. L. Indemnification agreement required. Any tobacco retailer applying for a Tobacco Retail license under this Chapter shall agree to fully indemnify, defend, and hold harmless the City, its officers, employees and agents for all claims, losses, or liabilities that arise out of the issuance or use of the Tobacco Retail license, or that arise out of any sale, distribution, transfer or use of tobacco products or tobacco paraphernalia, in a form approved by the City Attorney's Office. M. Licensed cannabis businesses. No license may issue, and no existing license may be renewed, to authorize tobacco retailing at a location licensed for commercial cannabis activity by the state of California in accordance with the Business and Professions Code Division 10, and the City in accordance with Chapter 6.12 Redding Municipal Code. In the course of tobaceo retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this Chapter for a licensee, or any of the licensee's agents or employees, to engage in commereial cannabis activity. 6.13.050 Application procedure for Tobacco Retailer. A. An application for a Tobacco- Retailer's license shall be submitted in the name of each owner or proprietor proposing to conduct retail tobacco sales and sha11 be signed by each owner or proprietor or an authorized agent thereo£ All applications shall be submitted on a form supplied by the Department. B. A license issued contrary to this Chapter, contrary to any other law, or issued on the basis of false or inisleading information shall be revoked pursuant to this Chapter.Nothing in this Chapter shall be construed to vest in any person obtaining or maintaining a Tobacco Retailer's license any status or right to act as a Tobacco Retailer in contravention of any provision of law. C. Applicant submissions shall contain the following information: (1) The name, address, and telephone number of each owner and proprietor of the business seeking a license. (2) The business name, address, and telephone number of the location for which a license is sought. (3) The name and mailing address authorized by each owner and proprietor to receive all communications and notices required by, authorized by, or related to the enforcement of this Chapter. (4) Proof that the business and location for which a Tobacco Retailer's license is sought has been issued all necessary state and municipal licenses for the sale of tobacco products. (5) Listing of all prior issuances, suspensions, and/or revocations of Tobacco Retail licenses for each named proprietor or owner of the business, or their agent, and the dates and locations of each action pursuant to this Chapter. (6) Listing of dates and locations for all prior violations of local, state, or federal law governing the sale of tobacco products or California Health and Safety Code section 11351, as amended from time to time, by each named proprietor or owner or their agent occurring within the previous five years. (7) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that he or she knows to be false is guilty of a misdemeanor punishable by imprisonm�nt of up to on�year in the county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine. (8) A statement by the applicant that they are the owner,proprietor,or authorized agent of the Tobacco Retail business for whieh the license is sought pursuant to this Chapter. (9) A signed affidavit affirming that the proprietor has not sold and will not se11 any tobacco product without a license required by this chapter. (10) Such other information as the Department deems necessary for the administration or enforcement o�this Chapter as specified on the application form required by this section. D. A licensed Tobacco Retailer or applicant shall inform the Department in writing of any change in the information submitted on an application for a tobacco retailer's license within ten business days of a change. 6.13.060 License issuance or deniai. Upon the receipt of a complete and adequate application for a tobacco retailer's license and the license fee required by this Chapter, the Department may approve or deny the application for a license, or it may delay action for a reasonable period of time to complete any investigation of the application or the applicant deemed necessary. The application shall be denied if one or more of the following circumstances exist: A. The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this Chapter. B. The application seeks authorization for Tobacco Retailing at a location for which this Chapter prohibits issuance of Tobacco Retailer licenses. C. The application seeks authorization for tobacco retailing for an owner or proprietor or their agent to whom this Chapter prohibits a license to be issued. D. The application seeks authorization for tobacco retailing that is prohibited pursuant to this Chapter; that is unlawful pursuant to this Code, including without limitation, the zoning ordinance, building code, or business license tax ordinance; or that is unlawful pursuant to any other law. E. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has previously been issued a license that is suspended or revoked by the Department for violation of any of the provisions of this Chapter. F. The application is for a license or renewal of a license for a retaillocation that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless: (1) It has been more than five years since a previous license for the retail location was revoked. (2) The person applying for the license provides the Department with documentation demons�rating that the applicant has acquired or is acquiring the premises or business in an arm's length transacrion. G. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code. 6.13.070 License renewal and expiration. A Tobacco Retailer's license is invalid if the appropriate fee has not been timely paid in full, the application is incomplete, or the term of the license has expired. The term of a Tobacco Retailer license is one year. Each Tobacco Retailer shall apply for renewal of their Tobacco Retailer's license and submit the license renewal fee no later than thirty days prior to expiration of the current license but no earlier than 60 days prior to the expiration of the current license. A licensee who submits an incomplete application may resubmit the application for renewal as long as the current license does not lapse. A Tobacco Retailer that fails to timely submit a renewal application and fee is ineligible for license renewal; however, a timely and complete application for renewal shall toll the existing license until the renewal application is approved or denied by the City. A license that has been revoked, or is subject to revocation proceedings, shall not be renewed. 613.080 Licenses nontransferable. A. A Tobacco Retailer's license may not be transferred from one person to another or from one location to another. A new Tobacco Retailer's license is reguired whenever a tobacco retailing location has a change in proprietor(s) or owners or a change in location. B. Notwithstanding any other provision of this Chapter, prior violations at a location shall continue to be counted against a location, and license ineligibility periods shall continue to apply to a location unless the location has been transferred to new proprietor(s) or owner(s) in an arm's length transaction. 6.13.090 License conveys a limited, conditional privilege. Nothing in this Chapter shall be construed to grant any person obtaining or maintaining a Tobacco Retailer's license any status or right other than the limited conditional privilege to act as a Tobacco Retailer at the location in the City identified on the face of the license. 6.13.100 Fee for license. The fee to issue or to renew a Tobacco Retailer's license shall be established by resolution of the City Council, which may be amended as needed at the City Council's discretion. The fee shall be calculated so as to recover the cost of administration and enforcement of this Chapter including, but not limited to, issuances of licenses, administration of the license program, retailer education, inspection and compliance checks of Tobacco Retailing businesses, documentation of violations, representation of the City at Board hearings, prosecution of violators, and other enforcement measur�s but shall not exceed the cost of the regulatory program authorized by this Chapter. A11 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. 6.13.110 Suspension or revocation of license. A. In addition to any other penalty authorized by law, a Tobacco Retailer's license shall be suspended or revoked if any court of competent jurisdiction determines, or the Department finds based upon a preponderance of the evidence that the licensee, or any of the licensee's agents, employees, or Tobacco Retailer locations, has violated any of the requirements, conditions, or prohibitions of this Chapter or has pleaded guilty, "no contest," or its equivalent, or admitted to a violation of any law applicable to the licensee in violation of this Chapter. Action tak�n by the directo�vvith respect to the suspension, n�odification, or revocation of a Tobacco Retail license shall be final and conclusive. Any lieensee aggrieved by the suspension, Inodification or r�vocation of a Tobaceo Retail license inay obtai�review of such decision by appeal to the �ity Mana�er or the City Manager's dcsignee. (1) Upon a finding by the Department of a first violation of this Chapter at a location within any five-year period,the license shall be suspended for fourteen (14) days. (2) Upon a finding by the Department of a second violation of this Chapter at a location within any five-year period, the license shall be suspended for thirty (30) days. (3) Upon a finding by the Department of a third violation of this Chapter at a location within any five-year period, the license shall be revoked. (4) Owners of Tobacco Retail businesses at more than one location are subject to increased penalties upon second and subsequent violations of this Chapter regardless of the business location where the earlier violation occurred. (5) The director or his designee shall have discretion to deviate from these guidelines and impose a harsher or more lenient penalty depending on the type and severity of violation, history of compliance or noncompliance by the licensee or location, and other relevant factors. (6) Penalties shall increase with each subsequent violation without regard to type of violation. B. A Tobacco Retailer's license shall be revoked if the Department finds, after the licensee is afforded notice and an opportunity to be heard,that information contained in the license application, including supplemental information, if any, is false in any material respect. C. A Tobacco Retailer's license shall be revoked if the Department fmds, after providing the licensee with notice and an opportunity to be heard, that one or more of the grounds for denial of a license pursuant to this Chapter existed at the time the application was made or at any point be�ore the license was issued. D. A licensee for whom a license suspension is in effect must remove all tobacco products and tobacco paraphernalia from the sales floor at the address that appears on the suspended or revoked lieense. Violation of this subseetion or engaging in tobaceo retailing while the license suspension is in effect shall result in a permanent revocation of the Tobacco Retail License. E. The suspension or revocation shall become effective immediately following notice of suspension or revocation from the Department, unless the holder of the license files an appeal in accordance with this Chapter. If such an appeal is filed, the suspension or revocation shall not become �nal until the appeal is resolved by a final decision of the City Manager or their designee, or withdrawal of the appeal. 6.13.120 Appeal of suspension or revocation. A. A decision of the Department to suspend or revoke a license is appealable to the City Manager or their designee, and any appeal must be filed in writing with the City Manager within ten(10) days of mailing of the Department's decision. B. If such an appeal is timely made, it shall stay enforcement of the appealed action. C. The decision by the City Manager or their designee shall be the final decision of the City. 6.13.130 Additional remedies. A. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity, including, without limitation those remedies established in Title l. B. Whenever evidence of a violation of this Chapter is obtained in any part through the participation of a person under the age of eighteen (18) years, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this Chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. C. Violations of this Chapter are subject to a civil action brought by the City, punishable by an administrative penalty not less than one thousand dollars ($1000)per violation. D. Subsequent violations of this Chapter are subject to increased administrative penalty amounts. E. Violations of this Chapter may, in the discretion of the City Attorney, be prosecuted as infractions or misdemeanors when the interests of justice so require. F. In addition to any other remedy or abatement authority allowed by law, the Director may take reasonable measures to enforce the suspension or revocation of a license. Such measures may include, but are not limited to,posting notices on the property whieh state tobacco products are not to be sold or purchased until the conclusion of the suspension, or requiring all tobacco products to be removed from the property during the suspension or revocation period. Removal of notices posted pursuant to this section sha11, constitute a misdemeanor violation of this Chapter. G. Violations of this Chapter are hereby declared to be public nuisances and subject to abatement by the City. H. For the purposes of the civil remedies provided in this Chapter: (1) Each day on which tobacco products or tobacco accessories are offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter; and (2) Each individual retail tobacco product and each individual retail item of tobacco accessories that is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter. I. All tobacco retailers are responsible for the actions of their employees relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer. Section 2. The passage of this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) (Title 14 of the California Code of Regulations) because it has no potential for resulting in physical change to the environment, directly or indirectly Section 3. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of remaining portions of the ordinance. The City Council of the City of Redding hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional. Section 4. This Ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause its publication according to law. I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City o�Redding at a regular meeting on the 15th day of July, 2025, and was duly adopted at a regular meeting on the_day of , 2025,by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: FORM APPROVED: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney DATE ATTESTED: , 2025 GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: September 17,2024 FROM: Jason Gibilisco, Management ITEM NO. 9.1(a) Assistant to the City Manager ***APPROVED BY*** ���m rt �.� s.N,.�� �� �„�,� 7t�su.��Ci� i co,�.; a��a��.exa�c�tt�+sivl�zikt�9lrwG:i4yhStrr�ag�,x 9r�:��2i 1�.1�71Ti,�1 � �.Cl ��.'� ���.���6��� jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 9.1(a)--Consider report regarding tobacco retailing in the City of Redding. Recommendation Accept the report on tobacco retailing and provide direction to staff regarding next steps. Fiscal Impact There is no fiscal impact with accepring the report. If the City Council (Council) would like to pursue drafting an ordinance on tobacco retailing, there would be associated staff time costs. Currently, the Redding Police Department (RPD) is running decoy operations through a grant. The grant consists of five operations a year with each operation consisting of 10-12 retailer visits per operation -revenue received per operation is $1,500. If the Council pursues a Tobacco Retail License (TRL) Program that is to be managed and enforced by Code Enforcement, staff would need to further examine cost recovery of the program. In TRL programs, the costs of education, inspections, and enforcement are funded by the cost of the license, and can be supplemented with grants. The cost of the license could fund a full time Code Enforcement position and even an administrative position to process the licenses. Further examination would be required. Alternatzve Actzon The Council could choose to not accept the report. Background/Analysis On February 6, 2024, staff presented to the Council a report regarding what California (Stat�) laws are in place and what other jurisdictions are doing in regards to tobacco enforcement. Staff presented a broad scope of what the majority of State jurisdictions are doing in regards to tobacco enforcement and specifically what the jurisdictions are doing in Shasta County. The P�cket Pg.2GU Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 2 Council accepted the report and advised staff to further canvas State municipalities to determine what is and is not working regarding tobacco enforcement, retailer density, how youth are targeted, and any other information as it relates to tobacco retailers. Since the previous meeting, the 2023 California Youth Tobacco Use Survey (survey) was released �or Shasta County and there is new legislation, that, if signed by the Governor, wi11 increase the fine for selling a tobacco product to youth. The survey was released in March 2024, and shows Shasta County has the highest rate of tobacco ever used by youth in the State of California at 41.2 percent'. The report shows that one in three Shasta County Youth report being able to purchase tobacco directly form a tobacco retailer'. On average, students reported first using tobacco at age 13 and 82.2 percent of students who have used tobacco reported trying vapes as their first tobacco producti. Potential new tobacco enforcement legislation has moved forward to Governor Newsom for consideration. Senate Bill (SB) 2021 supplements the existing fine that can be issued to an individual who knowingly sells a tobacco product to a person under 21 years of age. This new bill allows for a fine to be issued to the retailing businesses or corporation. The fine amount that can be issued to the business for knowingly selling to a youth is punishable by a fine of$500 for the first offense, $1,000 for the second offense, and$5,000 for the third offense. The California Department of Tax and Fee Administration (CDTFA) requires all retailers who sell cigarettes, or tobacco products, to obtain a cigarette and tobacco retailer's license. The CDTFA de�nes a tobacco product on their website as: • "any product containing, made, or derived from tobacco or nicotine that is intended for human consumption;" • "Any electronic smoking or vaping device that delivers nicotine or other vaporized liquids;" and • "Any component,part, or accessory of tobacco product, whether or not sold separately." Data Collection and Benchmarkin� Staff analyzed 48 various jurisdictions throughout the State on what types of tobacco ordinances and enforcement other jurisdictions have in place. Staff specifically asked jurisdictions if they have a tobacco ordinance, if they enforce their tobacco ordinance, and if the ordinance is working. Staff also viewed each jurisdiction's municipal code for specifications on tobacco related ordinances. Staff analyzed if a TRL is required, how many tobacco retailers are in the jurisdiction, what are the associated fees, population, penalties, and what specific ordinances are in place. Staff did not hear back from some jurisdictions through phone or email which resulted in reviewing online ordinances and information. Of the 4$jurisdictions that were analyzed, 28 of them require retailers to have a 1oca1 TRL. As of October 2023, at least 226 municipalities in California require a TRL to se11 tobacco products. Jurisdictions that require a TRL, required them to be renewed annually, allow them to have local control, and enforcement capabilities of the tobacco retailers in their jurisdiction. This allows the jurisdiction to set any additional requirements such as limits on how many retailers are operating in their jurisdiction and general oversight. Tt makes enforcement more effective and efficient and gives local governments the ability to intervene when needed. Many jurisdictions have set their ordinances to go above and beyond of what the federal and state law requires. Staff found several jurisdictions hav� adopted tobacco ordinances but currently have no funding for their tobacco program or for enforcement. These jurisdictions are Butte County, Oroville, P�cket Pg.2G1 Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 3 Hollister, San Benito County, Arroyo Grande, and Merced County. The Cities of Anderson, Santa Rosa, and Vallejo, stated that they are in the process of working on updating or creating a TRL program. The City of Benicia was found to have the most restrictive requirements for tobacco retailers. Followed by Sonoma County and Sonoma County cities such as Petaluma, Sebastopol, Windsor, and Sonoma. These jurisdictions require each tobacco retailer to hold a TRL, implemented density requirements (with some no longer issuing TRLs due to being over density), proximity requirements to youth areas, distance/proximity requirements to other tobacco retailers, no selling o�flavored tobacco, no tobacco retailing at pharmacies, minimum pricing requirements, and some even banning the sale of electronic cigarettes or vaping products. There was a wide array of specific ordinances that have been implemented throughout the State. The various ordinances in place include: Proximit_y Rec�uirement to a Youth Sensitive Area Jurisdictions have set requirements for tobacco retailers operating near youth sensitive facilities. Youth sensitive facilities mainly include, schools, parks, libraries, day cares, playgrounds, and ultimately, specific areas de�ned by the jurisdiction. Jurisdictions set prohibitions for tobacco retailers near schools beca�use of the belief that children are more likely to experiment with tobacco products when tobacco retailers are near youth areas. Setting distance restrictions near youth areas may assist with reducing youth smoking rates. There are 16 jurisdictions that have set a distance requirement for tobacco retailers near youth sensitive areas. The distance set by the jurisdictions analyzed ranges from 300 feet to 1,000 feet. Proximit.��c�uirements Near Existin� Tobacco Retailers There are 10 jurisdictions that have requirements for no new tobacco retailers to operate within a specific proximity to other tobacco retailers. This requirement prevents the over concentration of tobacco retailers within particular neighborhoods and how close they can operate from one another. The overconcentration of tobacco retailers may affect youth smoking behaviors and youth access to tobacco products. The distance set by the jurisdictions analyzed ranges from 500 feet to 1,000 feet. Tobacco Retailers taer Population Density or Ca� on the Amount of Tobacco Retailers Jurisdictions have imposed requirements for tobacco retailers based on the local population. Jurisdictions have based this requirement off of the State's ability to limit the number of alcohol licenses. Greater tobacco density may lead to higher smoking rates. In the jurisdictions analyzed, ]2 jurisdictions have adopted an ordinance based off the population. The jurisdictions analyzed had various densities adopted that include one tobacco retailer for every 1,500 residents (one jurisdiction), 1,750 residents (one jurisdiction), 2,000 residents (four jurisdictions), and 2,500 residents (three jurisdictions). This sets local capacity of tobacco retailers based on the number of residents. If population inereases then the number of tobacco retailers ean be inereased. The City of Sonoma has a set capacity of 15 retailers, and Nevada City has a set limit of five. The City of Oroville requires a use permit from planning and has a density requirement of one for every 4,000 residents for significant tobacco retailers which has been reached. P�cket Pg.2G2 ' Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 4 No Selling of Flavored Tobacco With the passing of SB 793, effective January l, 2023, flavored tobacco or tobacco product flavor enhancers are now illegal to se11, offer for sale, or possess with the intent to sell or offer for sale in the State with a few exceptions. Flavored tobacco is considered a starter product for youth that assists with long term tobacco use. There are countless flavors that range from Cotton Candy, Cherry Crush, Pop Tart, Banana Blast, Wintergreen, and many more. There are 1'7 jurisdictions that were analyzed that have an ordinance that prohibits the sale of flavored tobacco with solne going above and beyond SB 793 and banning a11 flavored tobacco. In communications with jurisdictions, flavored tobacco products are still being found, mainly at significant tobacco retailers such as smoke shops. No Sale of Electric Smokin�Devices (ESDs)/Vapes Electronic Cigarettes are also known as e-cigarettes, vapes, or e-vaporizers, and are battery operated devices used to deliver nicotine, flavorings, and other chemicals into the body in an aerosol form rather than smoke. The majority of ESDs or vapes are widely used for flavors. Following the ban on flavored tobacco,jurisdictions noticed that tobacco companies are finding ways to circumvent the flavor ban and are calling products by the names of colors such as `Blue." Blue could mean that its flavor is blue raspberry or bl�ueberry. ESDs are also what the youth are using in higher rates. The State's flavor ban does leave room for interpretation on what is and is not considered flavored tobacco. Jurisdictions have decided to go one step further and prohibit the sale of all ESDs for this reason. Since the majority of ESDs are flavored, jurisdictions reported minimal impacts to prohibiting the sale of ESDs. The Environmental Protection Agency classifies ESDs as hazardous waste due to their lithium batteries and nicotine in the liquid. There are seven jurisdictions analyzed that have prohibited the sale of ESDs. No Sellin� of Tobacco at Pharmacies Jurisdictions have restricted pharmacies from selling tobacco and tobacco related products. This ordinance is based off pharmacies being a place people go to for health care and medicine. It can send a mixed message about their safety because it is where people purchase healthcare products. There are 11 jurisdictions analyzed that have an ordinance in place prohibiting the sale of tobacco products at pharmacies. Minimum Packa�e Pricin /�Quantity Requirements/No Free Samples or Discounts Jurisdictions have imposed minimum pricing requirements and minimum packaging requirements. The implementation of pricing requirements is that if tobacco products are priced higher, then they are likely to be unaffordable by youth. Higher prices make products less appealing and can make people use tobacco products less. 1Vlinimum paeking requirements is thought to have the same logic. Cigarettes are already required to be sold in packs of 20 but cigars can be sold in singles. Some examples analyzed include: minimum price for a pack of cigarettes to be no lower than $7 or $10; little cigars to be sold in packs of fve or more and to be priced no less than $7; and smokeless tobacco to be no less than $10. Jurisdictions that have imposed minimum pricing and packaging ordinances have also imposed discount restrictions to back up the minimum pricing Pack�t Pg. 2fi3 ' Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 5 requirement. Coupons and free samples are prohibited under State law. Six jurisdictions analyzed have requirements on tobacco pricing and quantity packaging requirements. Smoke Free Multi-Famil_y Housing Jurisdictions have set no smoking requirements for multi-family housing. This restriction is in place to protect residents from second hand smoke, minimize fire risk, and provide overall quality of life to residents. The restriction includes no smoking in the building and in common areas with a designated smoking area away from the building or any units. There are nine jurisdictions that were analyzed that have created an ordinance prohibiting smoking in multi-family housing. Other Re�ulations Found • Tobacco retailer inust obtain a use permit through the jurisdiction's planning department to operate within a certain distance to a youth facility; • No significant tobacco retailers. A significant tobacco retailer can be defined as their primary purpose is to sell tobacco and tobacco related products; • No significant tobacco retailers to operate within a certain distance to residential property; • No deliveries of tobacco products to be made by employees or by private delivery drivers; • No placing tobacco prod�ucts or advertising within 5 feet of candy, snacks, and nonalcoholic beverages; • No advertising of tobacco products within 500 feet of a youth sensitive area•, and • No advertising of tobacco products on windows or advertising to be seen from outside the establishment. Majority of all jurisdictions analyzed that have imposed tobacco retailing restrictions allowed legally operating tobacco retailers to continue to operate post adoption of their ordinance as long as the tobacco retailer was in good standing. This included businesses that were within required distances to youth facilities and within proximity to other tobacco retailers, and if a TRL cap was initiated. Some offered grace periods such as San Jose, to sell off flavored tobacco which was prior to the State banning flavored tobacco. Santa Maria required pharmacies to immediately stop selling tobacco and San Luis Obispo County immediately required businesses to cease selling ESDs. Further break down of ordinances and analysis can be found on the attached Tobacco Retailer Regulation Comparison spreadsheet. What is and is not workin� The Council directed staff to follow up on what is and is not working. The jurisdictions that are successfully running a TRL program, provide education, inspections, and enforcement, feel like their ordinance is working to prevent youth access to tobacco products. If the jurisdiction has a density limit, it prevents the over density of more tobaceo retailers from operating. Jurisdietions feel that to be able to back up enforcement with fnes and TRL suspension and revocation assist greatly in preventing retailers from being a bad aetor. Fines allow the jurisdiction to immediately issue a citation for when violations are found such as a business selling flavored tobacco. If a business eontinues to sell flavored tobacco a jurisdietion can then issue a second citation and can suspend their TRL or wark towards fu11 revocation. Many jurisdictions expressed the use of discretion when deciding on the level of en�orcement to be issued. It was reported that Packet Pg. 264 Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 6 suspension and revocation of TRL can be stronger than fines but having all available options is best. The City of San Jose operates a decoy program and issues a citation amount of$2,500 for selling to a youth. The San Jose City Code Enforcement Inspector felt like the fine amount should be higher due to one business being �ned twice for selling to a decoy on two different occasions. The City of San Jose has smaller fine amounts for other violations such as selling flavored tobacco. Other cities have set fine amounts up to $5,000, and include suspension and revocation of the stores' TRL. A TRL suspension could have a higher business impact over a smaller fine amount on a business because the store physically has to remove all tobacco products from their store shelfs for a certain amount of time. Sonoma County has the ability to suspend a TRL and issue a citation. Some jurisdictions are able to suspend a TRL for any violation of their Tobacco Retail Ordinance. Jurisdictions with higher fines, suspensions and revocation of TRL are able to effectively enforce tobacco restrictions to ensure retailers are always in compliance. In the study that was performed, 2021 State of Tobacco Control: California Local Grades�`, for a TRL ordinance to be successful in reducing the sale of tobacco to minors it sho�uld include: • A sufficient fee for the TRL to cover administration and enforcement efforts; • Permission to sell tobacco through an annual license that must be renewed annually; • Include provisions against any state laws in ordinance; and • Financial deterrent that includes fines, penalties, suspensions and revocation of the license. In the report Tobacco Retailer Licensing is Effective, 41 jurisdictions were analyzed in 2018 and determined that youth sales rates dropped following the adoption of a strong tobacco retailer licensing ordinance. This was determined from youth purchase surveys administered by local agencies. The report indicates that a TRL alone will not decrease youth access but with enforcement and education regarding the local regulations will always be needed. Six of the jurisdictions that were analyzed were included this report (Davis, Elk Grove, Grass Valley, Oroville, San Luis Obispo County, and Woodland). City of Reddin�(Citx) Tobacco Retailer Landsca�e In the City there are 119 tobacco retailers. Staff worked with the County of Shasta and the State to obtain the actual amount of tobacco retailers to include sole proprietors, husband and wife co- owners, and domestic partners. The below table shows the number of store types that hold a CDTFA issued tobacco retailers license: Reddin Tobacco Retailers Gas Station 39 Smoke Sho / Si nificant Tobacco Retailers 29 Small Market/Convenience Store 25 Li uor Store 8 Pharmac 8 Su er 1Vlarket 7 Golf Course 2 Wine 1 Staff worked with the City's Information and Technology Department's Geographic Information System personnel to map all tobacco retailer adresses and compare their distance to youth Packet Pg. 265 Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 7 sensitive locations, and their distance to other tobacco retailers. Staff defined youth sensitive locations as the same as in the City's cannabis ordinance which includes schools, parks, and child care facilities. Of these stores there are 20 youth sensitive areas that are located within 1,000 feet of a tobacco retailer. There are 100 tobacco retailers that are located within 500 feet o� another tobacco retailer. The population density is one tobacco retailer for every 787 residents. Local Enforcement RPD received a grant earlier this year to perform decoy operations. RPD receives $1,500 per operation and must perform five operations a year with each operation requiring 10-12 retailer visits. To date, RPD has performed three tobacco decoy operations that included 41 decoy attempt purchases of tobacco. In all, five sales were made by a youth decoy. One tobacco retailer sold to a decoy twice on two different operations. The four stores are smoke shops and would be considered a significant tobacco retailer. Of these four store stores, two are located within 500 feet of another tobacco retailer and none are located within 1,000 feet of a youth sensitive area. In June of 2024 the CDTFA was in in the City doing inspections with Shasta County's Tobacco Compliance Specialist and RPD. Their mission was to ensure tobacco retailers were properly licensed through the State and have all proper invoices for their products dating back to a year. They are also able to confiscate illegally imported tobacco and cannabis products. They are unable to confiscate flavored tobacco which falls under the California Department of Public Health (CDPH) and they did not perform underage decoy purchases. They inspected seven tobacco retailers in Redding and found violations at all seven of the retailers. The violations range from confiscation of illegally imported products, confiscation of cannabis prod�ucts, and confirmation of flavored tobacco. The seven stores inspected were all smoke shops. Two of these stores were issued a citation and the total amount of confiscated illegal products exceeded $9,000. Three of these seven retailers sold to a minor as part of RPDs decoy operations earlier this year. The Food and Drug Administration (FDA) performs random and unannounced decoy operations and has their inspection logs publicly available on their website. From January 1, 2022, to July 16, 2024, there was one sale to a decoy out of 22 attempts. Their follow up procedure for a decoy sale is to send a warning letter, then after another confirmed sale, the FDA can follow up with civil penalties, injunctions, and criminal prosecution. The confirmed sale to a decoy was made at a smoke shop or significant tobacco retailer. How Kids are Tar e� ted Kids are targeted by tobacco companies in several different ways. The largest is advertising. The U.S. Centers for Disease Control and Prevention reported that cigarette and smokeless tobacco companies spent $8.2 billion in 2019 on advertising and promotional expenses"�. This includes incentives to retailers by tobacco companies to offer price discounts, promotions, and stocking certain brands. Lower prices and discounts are more appealing to lower income residents and more appealing to youth. Tobacco products such as a pack of three small cigars can be found far $1.19 in the City. The advertising of tobacco products includes how they are packaged. The packaging of tobacco products is made and designed similar to candy products. This can make it very appealing to youth. The placement of tobacco products and advertising are typically placed near candy, soft drinks, and adjacent to the cash register in places likely to be seen by youth. Advertisements can also be strategically placed outside to be seen by youth passing by. P�cket Pg.2G6 Report to Redding City Council September 22,2024 Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page S Flavors and ESDs are also more appealing to youth. Flavors can hide the distinct tobacco flavor and can make products easier to inhale. Flavored tobacco products have been banned in the State but flavored products are still being found in stores. ESDs come in a variety of designs, relatively low in price, easily concealable, and have high nicotine content that can make it very addicting to users. Next Steps If the Council would like to move forward with any potential tobacco retail ordinance and/ or TRL program, staff can further analyze and prepare an ordinance to bring back to the Council at a future date for possible adoption. This process will include necessary outreach with stakeholders, work with the City Attorney's Office and any other necessary departments. EnviNonmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Attachments ^Tobacco Staff Report February 6, 2024 ^Tobacco Retailer Licensing is Effective September 2018 ^California Youth Tobacco Survey-Shasta County Data California Youth Tobacco Survey 2023 Annual Report ^Jurisdictional Data 'Clodfelter,R.,Dutra,L.M.,Bradfieid,B.,Russell, S.,Levine,B.,&von Jaglinsky,A. (2023).Annuai results report for the California Youth Tobacco Survey 2023.RTI International. "County Grades. (2021).https:Uwww.lung.org/getmedia/3b258a14-f355-42d0-9cac-18901c1802eb/state-of- tobacco-control-california-local-grades.pdf "'CDC. (2018,May 4). Tobacco Industry Marketing. Centers for Disease Control and Prevention. https://www.cdc.gov/tobacco/data statistics/fact sheets/tobacco_industry/marketing/index.htm P�cket Pg.267 ' GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: March 18, 2025 FROM: Jason Gibilisco, Management ITEM NO. 9.1(c) Assistant to the City Manager ***APPROVED BY*** ���m rt �.� s.N,.�� �� �„�,� 7t�su��Ci' i c�,� a��a��exa�c t t�sitii�zik t�tlrw G i4y hSt7r�ag�x �t11r�(�25 1�.tpiTi,�i � �ti ��'�� 3/l 2/�6��� jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 9.1(c)--Consider accepting report regarding tobacco retailing in the City of Reddin . Recommendation Accept the report on tobacco retailing and provide direction to staff regarding next steps. Fiscal Impact There is no fiscal impact with accepting this report. If the City Council (Council) would like to alter the former Council's September 2024 previous direction to staff which was to create a Tobacco Retail License (TRL) ordinance speci�ic to vape/smoke shops there would be associated staff time costs with updating the ordinance. The Redding Police Department (RPD) has received two tobacco use prevention related grants. The first grant is with the County of Shasta to perform decoy operations through March 15, 2026. The grant consists of �ve operations a year with each operation consisting of 10 to 12 retailer visits per operation — revenue received per operation is $1,500. The second grant is through the California Department of Justice that provides $630,569 through October 31, 2027. This grant funds police officers to administer and conduct enforcement operations that include retail inspections, decoy operations, shoulder tap, undercover buys, and retailer education. Alternatzve Actzon The Council could choose to not accept the report or move forward with implementation of a TRL or provide other direction. Report to Redding City Council March 12,2025 Re: 9.1(c)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 2 Background/Analysis On February 6, 2024, staff presented a report to the Council outlining current California laws and tobacco enforcement practices in various jurisdictions, including Shasta County. The Council accepted the report and directed staff to conduct further research on tobacco enforcement practices in other California municipalities and detennine what is and is not working regarding tobacco enforcement, and any other information as it relates to tobacco retailers. Staff canvased the municipalities for information related to tobacco retailers and returned to Council on September 17, 2024 to present this information. Staff analyzed 48 jurisdictions with 28 of them requiring retailers to have a local TRL. This is in addition to the state license that is required by the California Department of Tax and Fee Administration for any retailers who se11 tobacco products. The cost of the state license is $265 and must be renewed annually. It is intended to prevent retailers from selling unregulated tobacco products. Municipalities that require a TRL also require an annual fee in concert with the TRL, and allows for local control, and enforcement capabilities over tobacco retailers in their jurisdiction. Many jurisdictions have set their ordinances to go above and beyond what the federal and state law requires. Jurisdictions that are successfully running a TRL program also provide education, inspections, and enforcement to their tobacco retailers. The Council accepted the September 17, 2024 staff report on tobacco retailing and directed staff to return with a TRL ordinance for vape and smoke shops, and include fee options to fund enforcement through both code enforcement and law enforcement, for consideration at a future Council meeting. Following the September 17, 2024 meeting, staff worked on both a TRL ordinance specific to vape and smoke shops and worked on fee options to fund the TRL program. The TRL ordinance speci�ic to vape and smoke shops is still under review and not ready to be presented at this time. The options to oversee the TRL program could be either RPD or Redding Code Enforcement (RCE). If the Council would like to pursue implementing a TRL program, the fee for the TRL will vary depending on the overseeing department; RPD ar RCE. The fee will also vary depending if it is vape/smoke shop only, or for all tobacco retailers. It was noted at the September 17, 2024 Council meeting, that there are 29 vape/smoke shops and 119 tobacco retailers in the City of Redding. RPDs identi�ied resource needs to oversee a TRL program would be one full-time Police Officer position and a half-time Sergeant position. RPD is currently receiving funding through the above-mentioned grant for tobacco use prevention related enforcement and education activities. RCE's identified resource needs to run the TRL program would be one full-time Neighborhood Preservation Officer and a half-time Admin Assistant. The following are the estimated costs for RPD and RCE to successfully cover administration and enforcement efforts based on their identified needs to run a TRL program based off the number of tobacco retailers. Report to Redding City Council March 12,2025 Re: 9.1(c)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 3 Redding Police Cost of a Full-time Estimated Cost of TRL Estimated Cost Department Police Officer and half- for Vape/ Smoke shops of TRL for al1 time Sergeant only(29) Tobacco Retailers 119 $379,000 $13,068.96 $3,184.87 Redding Code Cost of a Full-time Estimated Cost of TRL Estimated Cost Enforcement Neighborhood for Vape/ Smoke shops of TRL for a11 Preservation Officer and only(29) Tobacco half-time Admin Retailers (119) Assistant $140,020 $4,828.27 $1,176.63 The TRL program costs are significantly reduced if requiring all tobacco retailers to be licensed versus the vape/smoke shops on1y. TRL program costs are even further reduced with RCE overseeing the program. The cost of the TRL covers staff time costs to run the TRL program and includes education, inspections, and enforcement for tobacco retailers. Of course the cost could be further reduced if the Council wanted to lower the amount of oversight or wished to subsidize the activity with the General Fund. At the February 18, 2025, Council meeting, agenda item 12, the Council directed staff to bring back the TRL item for further direction. If the Council would like to move forward with altering the previously directed tobacco retail ordinance for vape/smoke shops, staff can further analyze and update the ordinance to bring back to the Council at a future date for possible adoption. This process will incl�ude necessary outreach with stakeholders, work with the City Attorney's Office and any other necessary departments. Envir�onmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City ManageN Goals � Public Safety — "Work to improve a11 aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." Attachments ^Tobacco Staff Report February 6, 2024 ^Staff Report City Council9-17-24 ^Jurisdictional Data Tobacco Retailer Licensing is Effective September 2018 California Youth Tobacco Survey-Shasta County Data California Youth Tobacco Survey 2023 Annual Report GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: June 1'7,2025 FROM: Jason Gibilisco, Management ITEM NO. 9.1(d} Assistant to the City Manager ***APPROVED BY*** ���m rt �.� s.N,.�� �� �„�,� 7�aso Ci e c�, a��a�caaiu t t�sivi�i�t t�tlr�C itY�7t7r�n�ux 5;22'2(�25 1Ia}?ITi,�"1 dll � fs,��1/7�Y�� jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 9.1(d)--Consider adopting a tobacco-oriented retailer ordinance. Recommendation Authorize and approve the following: (1) Offer an Ordinance amending Redding Municipal Code Title 6 (Business Taxes, Licenses, and Regulation), Chapter 6.13 (Redding M�unicipal Code Tobacco-Oriented Retailing) adopting a Tobacco-Oriented Retail license for first reading by title only, waive the fu11 reading; (2) Authorize the City Attorney to prepare a summary ordinance and the City C1erk to publish the same in accordance with law; and (3) Find that the adoption of this ordinance is exempt from environmental review pursuant to California Environmental Quality Act guidelines 15060(c)(2) and 15061(b)(3) and further find that the passage of this ordinance will have no foreseeable direct or indirect physical change in the environment. Fiscal Impact If the new ordinance is adopted, a11 Tobacco-0riented Retailers will be required to pay a fee of $4,828.27 - the fee is based on Code Enforcement administering the Tobacco-Oriented Retailer Program and that there are 29 vape/smoke shops that wi11 be classified as Tobacco-Oriented Retailers. As proposed, Code Enforcement staff would include one full-time Neighborhood Preservation Officer and a half-time Administrative Assistant. The fee could increase or decrease if the number of Tobacco-Oriented Retailers is found to be more or less than 29. Alternative Action The City Council (Council) may choose not to adopt an ordinanee regulating Tobaeeo-Oriented Retailers or the Council may direct staff to edit the licensing ordinance to incorporate licensing all tobacco retailers. This will signifieantly drop the �ee for the program to $1,176.63 sinee it is spread out over approximately 119 retailers. The Council may also provide alternate direction to staff. P'�cicet Pg. '1'142 Report to Redding City Council June 12,2025 Re: 9.1(a')--Consider adopting a tobacco-oriented retailer ordinance Page 2 Background/Analysis On March 18, 2025, staff presented the Council with background information on previous tobacco retail items, including the Council's most recent direction from September 17, 2025, Council meeting and the fees associated with operating a tobacco retail program through both the City of Redding Police Department and Code Enfarcement Division. At that meeting, the Council directed staff to return with a licensing ordinance that includes location restrictions and capacity limit for smoke and vape shops. Staff worked with Code Enforcement and the City Attorney's Office to create a draft tobacco retailing ordinance (Draft Ordinance) that was specific to creating a license requirement for vape and smoke shops. In addition to creating the draft ordinance staff also added location restrictions and capacity limit for smoke and vape shops. Staff has confirmed adding these restrictions does not require an update to the zoning code and can be accomplished via the ordinance. Under the draft ordinance, all Tobacco-Oriented Retailers wi11 be required to obtain a license unless they meet at least three out of seven exemption criteria. These criteria are designed to exclude general tobacco retailers such as gas stations, convenience stores, supermarkets, golf courses and other similar stores from the definition of "Tobacco-Oriented Retailer." They include: 1. Businesses that have contracts with tobacco manufactures; 2. Businesses that have gas pumps and sell gas; 3. Businesses that have licenses to sell beer and wine or liquor; 4. Businesses who have ownership rights to the property; 5. Businesses that have a minimum gross sales of non-tobacco products in excess of 75 percent; 6. Businesses that include a pharmacy on site; and 7. Businesses whose primary use is a golf course. To create this definition and establish the criteria, staff inet with various business owners to learn the differences in their stores compared to smoke and vape shops. Staff also attempted to meet with smoke and vape shop staff but they were not interested in discussions. In the City of Redding (City) there are approximately 29 Tobacco-Oriented Retailers. Staff determined that the capacity limit for Tobacco-Oriented Businesses is 20 and recommends reducing the total number of Tobacco-Oriented Retailers respectively. Current Tobacco-Oriented Retailers will be allowed to continue to operate as long as they submit a complete and accurate Tobacco-Oriented Retail application and pay the required fee within 60 days of ordinance adoption. New Tobacco-Oriented Retailers will not be permitted to operate within 1,000 feet of a youth- oriented facility following the adoption of the draft ordinance. A youth-ariented facility includes schools providing instruction of any grades Kindergarten through grade 12, public library, public parks, and other similar youth-ori�nted facilities that are primarily used to host recreation and social activities to youth. Packet Pg, 7'143 Report to Redding City Council June 12,2025 Re: 9.1(a')--Consider adopting a tobacco-oriented retailer ordinance Page 3 The final distance requirement of the draft ordinance restricts new Tobacco-Oriented Retailers to operate within 500 feet of an existing Tobacco-Oriented Retailers. The distance requirements for both youth-oriented �acilities and existing Tobacco-Oriented Retailers will only come into effect once the total number of Tobacco-Oriented Retailers drops under 20, affecting only new Tobacco-Oriented Retailers that seek to operate following adoption of the draft ordnance. The draft ordinance allows for enforcement, inspections, and education to all tobacco retailers not just TobaccaOriented Retailers. All retailers will be subject to inspections; retainment of purchase invoices for tobacco products for staff review; there will be no sale of flavored tobacco products; and no tobacco products to be sold to a person under the age of 21. This allows for the City to investigate complaints on retailers that are not classified as Tobacco-Oriented Retailers and hold all tobacco retailers accountable. Pending adoption of the ordinance, staff wi11 bring back a resolution for adoption of a Tobacco- Oriented Retailer licensing program and a resolution for adoption of administrative fines. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • Government of the 21st Century — `Be �elevant and p�^oactive to the oppo�tunities and challenges of today's residents and wo�kforce. Anticipate the future to make better decisions today." Attachments ^Draft Ordinance ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance Staff Report from September 17, 2024 Staff Report from March 18, 2025 Packet Pg, 7'144