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HomeMy WebLinkAboutOrd 01-20 Amending Chapter 4.40 (Tobacco Retailers) to Title 4 (Regulation of Businesses) of the DMCORDINANCE NO. 01 - 20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************** AMENDING CHAPTER 4.40 (TOBACCO RETAILERS) TO TITLE 4 (REGULATION OF BUSINESSES) OF THE DUBLIN MUNICIPAL CODE WHEREAS, the United States Surgeon General has concluded that secondhand smoke exposure can cause serious health problems, especially in children; and WHEREAS, even occasional exposure to secondhand smoke is harmful, and low levels of exposure to secondhand tobacco smoke can lead to increased health risks; and WHEREAS, electronic cigarettes produce an aerosol or vapor of undetermined and potentially harmful substances, which may appear similar to the smoke emitted by traditional tobacco products; and WHEREAS, the World Health Organization (WHO) recommends that electronic smoking devices not be used indoors, especially in smoke free environments, in order to minimize the risk to bystanders of breathing in the aerosol emitted by the devices and to avoid undermining the enforcement of smoke free laws; and WHEREAS, the smoking of tobacco and the use of electronic cigarettes are forms of air pollution and are a danger to public health as well as a material public nuisance; and WHEREAS, the California Legislature has recognized the danger of tobacco use and has made reducing youth access to tobacco products a high priority; and WHEREAS, despite local, state, and federal efforts to limit youth access to tobacco, minors are still able to access tobacco products; and WHEREAS, the federal Family Smoking Prevention and Tobacco Control Act, enacted in 2009, prohibited candy and fruit -flavored cigarettes, largely because these flavored products were marketed to youth and young adults, and younger smokers were more likely to have tried these products than older smokers; and WHEREAS, although the manufacture and distribution of flavored cigarettes (excluding menthol) is banned by federal law, neither federal nor California laws restrict sales of flavored non -cigarette tobacco products, such as cigars, cigarillos, smokeless tobacco, hookah tobacco, and electronic smoking devices and the nicotine solutions used in these devices; and WHEREAS, flavored non -cigarette tobacco products have become increasingly common and are available in a variety of flavors that appeal to children and young adults, including apple, cherry, chocolate, grape, peach, strawberry, and vanilla; and WHEREAS, the U.S. Surgeon General has stated that flavored tobacco products are considered to be "starter" products that help establish smoking habits that can lead to long-term addiction; and Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 1 of 7 WHEREAS, electronic cigarette companies have targeted minors with fruit -flavored products, and it is unknown if e -cigarettes may lead minors to try other tobacco products; and WHEREAS, the California Constitution, Article XI, Section 7, provides cities and counties with the authority to enact ordinances to protect the health, safety, welfare, and morals of their citizens; and WHEREAS, California state law prohibits the sale or distribution of free or nominal -cost cigarettes or smokeless tobacco products (or coupons, coupon offers, or rebate offers for such products) on public grounds or on private grounds that are open to the public; and WHEREAS, California state law specifically allows adoption of a local ordinance related to the distribution of free or nominal -cost tobacco products that is "more restrictive" and provides that a stricter local ordinance shall govern in the case of any inconsistency between the local ordinance and state law; and WHEREAS, the FDA and federal law also expressly grants state and local governments the right to enact measures that are more restrictive than those in the federal law; and WHEREAS, the City of Dublin has a substantial interest in promoting compliance with federal, state, and local laws prohibiting the sale or furnishing of tobacco products and electronic cigarette products to minors; in discouraging the illegal purchase of tobacco and electronic cigarette products by minors; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to minors; and in protecting children from being lured into illegal activity through adult misconduct; and WHEREAS, since Chapter 4.40 was last amended in 2010, the public has been presented with more information about the dangers of electronic cigarettes and flavored tobacco products; and WHEREAS, it is the intent of the City Council, in enacting this ordinance, to ensure compliance with the business standards and practices of the City of Dublin and to encourage responsible tobacco retailing and to discourage violations of tobacco -related laws, especially those which prohibit or discourage the sale or distribution of tobacco and nicotine products to minors, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalties provided therein. NOW, THEREFORE, the City Council of the City of Dublin does ordain as follows: Section 1. Recitals. The above recitals are true and correct and made a part of this Ordinance. Section 2. Approval of Amendments. Chapter 4.40.020 of the Dublin Municipal Code is amended as follows: Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 2 of 7 4.40.020 Definitions. "Arm's length transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm's length transaction. "Chief of Police" means the Chief of the Dublin Police Department or his or her designee. "Cigar" means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing more than three pounds per thousand. "Cigarette" means (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (2) any roll of tobacco wrapped in any substance containing tobacco, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described herein. "Characterizing flavor" means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including, but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb, or spice; provided, however, that a tobacco product shall not be determined to have a characterizing flavor solely because of the use of additives or flavorings or the provision of ingredient information. "Electronic smoking device" or "e -cigarette" means any device or delivery system sold in combination with nicotine which can be used to deliver to a person nicotine in aerosolized or vaporized form, including, but not limited to, an e -cigarette, e -cigar, e -pipe, vape pen, or e -hookah. Electronic cigarettes include any component, part, or accessory of such a device that is used during the operation of the device when sold in combination with any liquid or substance containing nicotine. Electronic cigarettes also include any liquid or substance containing nicotine, whether sold separately or sold in combination with any device that could be used to deliver to a person nicotine in aerosolized or vaporized form. Electronic cigarettes do not include any device not sold in combination with any liquid or substance containing nicotine, or any battery, battery charger, carrying case, or other accessory not used in the operation of the device if sold separately. "Electronic smoking device" does not include any product specifically approved by the United States Food and Drug Administration for use in the mitigation, treatment, or prevention of disease. "Flavored tobacco product" means any tobacco product that imparts a characterizing flavor. "Person" means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. "Proprietor" means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business. Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 3 of 7 "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 retailer or employee of the retailer and a direct person -to -person transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display. "Smoking" means: (1) possessing a lighted tobacco product, lighted tobacco paraphernalia, or any other lighted weed or plant (including a lighted pipe, cigar, hookah pipe, or cigarette of any kind) and means the lighting of a tobacco product, tobacco paraphernalia, or any other weed or plant (including a pipe, cigar, hookah pipe, or cigarette of any kind) or (2) the use of an electronic smoking device. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, electronic smoking device cartridges, electronic smoking device liquids, and any other item designed for the smoking, preparation, storing, consumption, or use of tobacco products or electronic smoking devices. "Tobacco product" means: (1) any 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, snuff; and (2) any electronic device that delivers nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, electronic cigar, electronic pipe, or electronic hookah. (3) Notwithstanding any provision of subsections (1) and (2) to the contrary, "Tobacco product" includes any component, part, or accessory intended or reasonably expected to be used with a tobacco product, whether or not sold separately. "Tobacco product" does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. "Tobacco retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, tobacco products or tobacco paraphernalia. "Tobacco retailing" shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. Chapter 4.40.03 of the Dublin Municipal Code is amended as follows (with additions in italics and deletions in strikethrough): 4.40.030 Tobacco retailer license required; General Requirements and Prohibitions. A. It shall be unlawful for any person to act as a tobacco retailer in the city of Dublin without first obtaining and maintaining a valid tobacco retailer's license pursuant to this chapter for each location at which that activity is to occur. Tobacco retailing without a valid tobacco retailer's license is a nuisance as a matter of law. Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 4 of 7 B. Display of License. Each tobacco retailer license shall be prominently displayed in a publicly visible location at the licensed location. C. Positive Identification Required. No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty-seven (27) years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under state law to purchase and possess the tobacco product or tobacco paraphernalia. D. False and Misleading Advertising Prohibited. A tobacco retailer or proprietor without a valid tobacco retailer license, including, for example, a person whose license has been revoked: 1. Shall keep all tobacco products and tobacco paraphernalia out of public view. The public display of tobacco products or tobacco paraphernalia in violation of this provision shall constitute tobacco retailing without a license under Section 4.40.100; and 2. Shall not display any advertisement relating to tobacco products or tobacco paraphernalia that promotes the sale or distribution of such products from the tobacco retailer's location or that could lead a reasonable consumer to believe that such products can be obtained at that location. E. License may be issued only to a business that will engage in tobacco retail activities at a fixed location. F. License Conveys a Limited, Conditional Privilege. Nothing in this chapter shall be construed to grant any person obtaining and 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 permit. For example, nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, but not limited to, any provision of this code, including without limitation the zoning ordinance, building codes, and business license tax ordinance, or any condition or limitation on smoking in an enclosed place of employment pursuant to California Labor Code Section 6404.5. For example, obtaining a tobacco retailer license does not make the retailer a "retail or wholesale tobacco shop" for the purposes of California Labor Code Section 6404.5. G. Fee for License. The fee for the issuance and renewal of a tobacco retailer's license shall be established from time to time by resolution of the City Council, and shall be due and payable at the time a license application is submitted to the city. The fee shall be calculated so as to include, but not exceed, the cost of administration and enforcement of this chapter, including the administration of the license program, retailer inspection and compliance checks. 1. In any year where grant funding has been obtained to recover the cost of administration and enforcement of this chapter, or a portion thereof, the amount of the license fee charged for the twelve (12) months following receipt of the grant funding shall be reduced based on the amount of grant funding received and on the total number of tobacco retailers operating in the city. (Ord. 20-12 § 10 (part)) H. Sale of Flavored Tobacco Products Prohibited. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, any flavored tobacco product. Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 5 of 7 1. There shall be a rebuttable presumption that a tobacco retailer in possession of four or more flavored tobacco products, including, but not limited to, individual flavored tobacco products, packages of flavored tobacco products, or any combination thereof, possesses such flavored tobacco products with intent to sell or offer for sale. 2. There shall be a rebuttable presumption 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: (a) made a public statement or claim that the tobacco product imparts a characterizing flavor; (b) used text and/or images on the tobacco product's labeling or packaging to explicitly or implicitly indicate that the tobacco product imparts a characterizing favor; or (c) taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product imparts a characterizing Flavor. I. Sale of Electronic Smoking Devices Prohibited. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, an electronic smoking device. Section 2: California Environmental Quality Act. This Ordinance is exempt from the California Environmental Quality Act ("CEQA") per CEQA Guidelines Section 15061(b)(3). Section 15061(b)(3) states that CEQA applies only to those projects that have the potential to cause a significant effect on the environment. The adoption of this Ordinance is exempt from CEQA because the Ordinance does not, in itself, allow the construction of any building or structure, but it sets forth the regulations that shall be followed if and when a building or structure is proposed to be constructed or a site is proposed to be developed. This Ordinance of itself, therefore, has no potential for resulting in significant physical change in the environment, directly or ultimately. Section 3. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. However, until July 1, 2020 City will not enforce those portions of the Ordinance prohibiting the sale the flavored tobacco products or electronic smoking devices. Section 5. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 6 of 7 PASSED, APPROVED AND ADOPTED this 4th day of February, 2020, by the following vote: AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: orA ay r ATTEST: City Cler Ord No. 01-20, Item 4.5, Adopted 02/04/20 Page 7 of 7