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RECOMMENDATION Staff recommends that the City Council: A. Not incorporate minimum package sizes or prices in the City's tobacco regulations B. Introduce the ordinance to enact tobacco restrictions per Council's February 18, 2020 action, with enforcement of the prohibition on the sale of flavored tobacco and electronic smoking devices and related paraphernalia beginning 12 months from the ordinance's effective date (May 24, 2021). FINANCIAL STATEMENT Existing staff within the Police Department and Code Enforcement Division would enforce new tobacco restrictions. As a TRL program is developed, an annual permit fee may off-set some of the monitoring and enforcement costs. The City is expected to see a decrease in its local share of sales tax proceeds following the adoption of the prohibition on the sale of flavored tobacco products and electronic smoking devices and related paraphernalia in the range of$25,000-$40,000 annually.' BACKGROUND The agenda materials from the Council's February 18, 2020 meeting are available for reference at http://www.cityofpleasantonca.gov/gov/council/granicus.asp. DISCUSSION Minimum Package Size and Pricing. Council received testimony that young people experiment with many types of tobacco products, are price-sensitive, and often prefer to purchase tobacco items in smaller quantities to avoid detection. While federal law requires cigarettes to be sold in packs of 20, there are no other laws regarding package size or price regulations for tobacco products. As shown in Figure 1, little cigars and cigarillos are similar in size to cigarettes. Figure 2 includes examples of small packages of tobacco products available at a Pleasanton pharmacy, including cigarillos sold in 3-packs, and little cigars sold individually. 1 This estimate is derived from 2019 sales tax proceeds from tobacco stores in Pleasanton.