To: Sonoma County Board of Supervisors
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Tina Rivera 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Tobacco Retailer License Administration Agreement - City of Petaluma
End
Recommended Action:
Recommended action
Authorize the Director of Health Services, or designee, to execute a memorandum of understanding with the City of Petaluma for the County to receive revenue for providing administration and compliance of the Tobacco Retailer License program for the City of Petaluma for the period of July 1, 2023 through June 30, 2024.
end
Executive Summary:
The Department of Health Services is requesting approval of a memorandum of understanding with the City of Petaluma under which the County of Sonoma will provide administration and compliance activities associated with the City of Petaluma’s recently enacted Tobacco Retailer License (TRL) ordinance. The County will collect and retain license fees from an estimated 40 tobacco retailers doing business in the City of Petaluma.
Projected fee revenue of $20,200 per fiscal year will cover the cost of providing administration and compliance services including one annual retailer site visit.
Discussion:
On December 6, 2021, the City of Petaluma unanimously approved an ordinance requiring licensure of tobacco retailers in the City of Petaluma. The ordinance was developed with technical support from the County of Sonoma Department of Health Services. The comprehensive ordinance includes a $10 minimum price that applies to the pack size, and limits on cigars and little cigars. Other major provisions include a ban on the sale of flavored tobacco products, including menthol, and a prohibition of the sale of e-cigarettes.
The City of Petaluma ordinance (Chapter 8.21 - Regulation of Retail Tobacco Sales) includes language that delegates authority to the Department of Health Services to enforce or administer the regulation and sale of tobacco products and paraphernalia requiring a TRL (Section 8.21.140). The Department of Health Services is requesting approval to enter into a memorandum of understanding with the City of Petaluma under which the Department of Health Services will provide administration and compliance services related to the City of Petaluma Retailer License program. The Department of Health Services staff currently administer the City of Petaluma’s TRL program, as well as the County’s Tobacco Retailer License program, and the Town of Windsor’s TRL program, and have the systems and procedures in place to efficiently provide TRL program administration and compliance activities to the City of Petaluma.
Under the memorandum of understanding, the Department of Health Services will have authority to conduct education and one compliance visit in a 12-month period to each tobacco retailer, with the City of Petaluma providing final decision on any potential suspension or revocation of license while issuing associated citations and administrative hearing processes. The memorandum of understanding details the roles and responsibilities of the County and the City of Petaluma and will be substantially similar to the form attached hereto as Attachment 1. Under the terms of the memorandum of understanding, the County will collect and retain the license fees from an estimated 40 tobacco retailers doing business in the City of Petaluma. The projected fee revenue of $20,200 per fiscal year will cover the cost of providing the administration and compliance services including one annual retailer site visit.
The Department of Health Services will monitor costs associated with providing the agreed upon services to the City of Petaluma. Should revenue from the collection of fees not cover the cost of providing the services, the Department will work with the City of Petaluma to determine an appropriate adjustment to Petaluma’s Tobacco Retailer License fee. It is important to note that the City of Petaluma will retain responsibility for setting the Tobacco Retailer License fee amount and for ensuring compliance with Proposition 26.
References: Chapter 8.21 - Regulation of Retail Tobacco Sales - <https://petaluma.municipal.codes/Code/8.21>
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
Yes
Youth and young adult tobacco use rates have increased in recent years due to the popularity of e-cigarettes, which is, in part, attributable to their highly addictive qualities, and their ubiquity in an unregulated marketplace. Youth have also been marketed to unlawfully, as demonstrated in a 2023 lawsuit co-led by New York Attorney General Letitia James and California Attorney General Rob Bonta where JUUL, an e-cigarette manufacturer partially owned by tobacco giant Altria/Philip Morris, settled a lawsuit with six states for $462 million. This marketing has contributed to e-cigarette’s high use rates among minors: based on recent 2023 data, it is estimated that approximately nine (9%) percent of Sonoma County’s high school population are regular e-cigarette users.
There are other populations/groups that have also been aggressively targeted by the tobacco industry resulting in disproportionate morbidity and mortality rates as a result of tobacco use. This bears out in Sonoma County as it does across the nation. In Sonoma County, for example, smoking rates are high among Lesbian Gay Bisexual (LGB) (31% prevalence rate) and African American/Black (15% prevalence rate) populations, as compared to, for example, non-LGB at 8% and White at 11%.
Given the amassing research showing the negative effects of e-cigarettes for youth as well as other populations, using strategies to decrease the effects are warranted. Proven strategies to advance health equity include reducing access to commercial tobacco products and reducing exposure to commercial tobacco marketing. Implementing strong TRL policies are measures that break down barriers to achieving health, especially for populations with greater exposure to tobacco products and marketing including youth and young adults, socially disadvantaged, racial minorities, and LGTBQ populations. The City of Petaluma’s TRL policy is among the strongest in California.
Prior Board Actions:
On May 17, 2022 the Board approved a memorandum of understanding with the City of Petaluma for the County to receive revenue for providing administration and enforcement of the Tobacco Retailer License program for the City of Petaluma for the period July 1, 2022 through June 30, 2023.
On October 5, 2021 the Board approved a memorandum of understanding with the Town of Windsor for the County to receive revenue for providing administration and enforcement of the Tobacco Retailer License program for the Town of Windsor for the period of July 1, 2021 through June 30, 2026.
On April 19, 2016 the Board adopted an ordinance (as amended) adding Chapter 32A (Licensure of Tobacco Retailers) to the Sonoma County Code to require the licensure of tobacco retailers within unincorporated Sonoma County.
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
20,200 |
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|
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Total Expenditures |
20,200 |
0 |
0 |
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Funding Sources |
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General Fund/WA GF |
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|
|
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State/Federal |
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|
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Fees/Other |
20,200 |
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Use of Fund Balance |
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Contingencies |
|
|
|
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Total Sources |
20,200 |
0 |
0 |
Narrative Explanation of Fiscal Impacts:
Fee revenue in the amount of $20,200 will be added to the FY 23-24 budget via the consolidated budget adjustments process. Projected revenue for succeeding years will be included in the appropriate fiscal year budget.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1 - Memorandum of Understanding with the City of Petaluma
Related Items “On File” with the Clerk of the Board:
None