MEETING DATE:
JUNE 22, 2021
SUBJECT:
Title
ORDINANCE NO. 2021 -1498 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, AMENDING SECTION 5.55.100 (SUSPENSION OR REVOCATION OF LICENSE) OF CHAPTER 5.55 (TOBACCO RETAIL LICENSE) OF THE SAN MARCOS MUNICIPAL CODE TO MODIFY PROVISIONS RELATING TO SUSPENSION OR REVOCATION OF TOBACCO RETAIL LICENSES
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Recommendation
Recommendation
INTRODUCE an Ordinance amending section 5.55.100 of Chapter 5.55 of the San Marcos Municipal Code to modify provisions relating to suspension or revocation of tobacco retail licenses.
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Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of Life
Relevant Department Goal
Not applicable
Introduction
In 2016, the City Council acted to modify the San Marcos Municipal Code (SMMC) to require retailers of tobacco retailers in the City of San Marcos (City) to obtain a Tobacco Retail License for each location at which tobacco retailing is to occur, and to maintain the license for so long as they sell tobacco products. The Tobacco Retail License has provided an additional compliance and enforcement mechanism for tobacco and drug laws such as the SMMC Chapter 1.10, which regulates youth access to smoking materials.
Enforcement of tobacco regulations is most often achieved by way of a compliance check whereby minors are sent into retail locations to see if clerks will sell to them, as retailers risk losing their ability to sell tobacco products if there are repeat violations. Losing that ability even for a short period of time can have a significant impact on their retail sales. According to the Convenience Store News 2020 industry report, tobacco still accounts for 35% of convenience store sales.
In recent years, the City has seen most tobacco retailers comply with the prohibition against sales to minors. For certain retailers, compliance efforts have gone beyond a first license violation. It is believed that removing the initial 30-day suspension for a second license violation within any three-year period, which would then impose a 90-day license suspension for the second license violation within a three year period, would secure compliance on a more expedited basis.
Discussion
Approximately 58 Tobacco Retail Licenses have been issued to stores in San Marcos. The number of licenses changes from time to time as stores open or close, and as certain merchants such as CVS decide to stop selling tobacco.
Since the adoption of the Tobacco Retail License laws, most tobacco retailers in the City comply with the prohibition against sales to minors. For certain retailers, compliance efforts have gone beyond a first license violation. Removal of the initial 30-day suspension for a second license violation within any three-year period is suggested for City Council consideration, in an effort to secure compliance on a more expedited basis, and to punish retailers who are in violation of the law. Adoption of the proposed revisions of section 5.55.100.A of Chapter 5.55 of the San Marcos Municipal Code would impose a 90-day license suspension for the second license violation within a three- year period. Additionally, a 90-day suspension period for a second license violation is consistent with ordinances in Chula Vista, Escondido, and Solana Beach. Other agencies, such as the County of San Diego and El Cajon, impose a 60-day suspension following the first violation. Oceanside and Vista impose a 30-day suspension after the first violation.
It is recommended that the City Council amend section 5.55.100.A to provide for the following penalty scheme:
• 1st violation within 3 years results in a warning and a requirement to train employees within 60 days.
• 2nd violation within 3 years is a suspension of up to 90 days.
• 3rd violation within 3 years is suspension up to 1-year.
• 4th violation within 3 years may result in the revocation of the license.
Outreach to tobacco retailers
Prior to this agenda item, an outreach letter was sent to each of the tobacco retailers in the City advising them of the proposed amendments to the Tobacco Retail Licensing program. No public comment was received from any tobacco retailers at either of the Commission meetings.
Upon adoption of this Ordinance, staff will work with provide education and outreach to tobacco retailers and community organizations. The proposed revisions to the Tobacco Retail License regulations should not require a change to the regular business practices of tobacco retailers unless they lack training for personnel on age checks, which they are already required to abide by under the regulations in their current form.
Environmental Review
The proposed Ordinance is not a project within the meaning of Section 15378 of the California Environmental Quality Act (CEQA) Guidelines because there is no potential for it to result in a physical change in the environment, either directly or indirectly. In the event this Ordinance is found to be subject to CEQA, it is exempt from CEQA pursuant to the exemption contained in CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment.
Fiscal Impact
It is not anticipated that implementation of the proposed Ordinance will result in a fiscal impact to the City. Enforcement costs may decrease in the event offending retailers seek to avoid the penalties associated with suspension of the Tobacco Retail License.
Attachments
1. Ordinance 2021 - 1498
2. Exhibit A
Prepared by: Helen Holmes Peak, City Attorney
Reviewed by: Jack Griffin, City Manager