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RECOMMENDATION Staff recommends that the City Council introduce the proposed ordinance to amend Municipal Code Chapter 9.32 to: (1) establish a tobacco retailer permitting program and require tobacco retailers to obtain such a permit by January 1, 2021; and (2) authorize the Chief of Police to refer persons under the age of 21 to counseling if they are found in possession of tobacco products in public places two or more times. Council may also discuss and provide direction regarding treatment of existing tobacco stores and tobacco retailers within 1,000 feet of public schools, parks and recreation facilities. While staff is providing an update regarding the City of Livermore's consideration of an exemption from its flavored tobacco ban, staff is not recommending that such exemption be adopted in Pleasanton. FINANCIAL STATEMENT Existing staff within the Community Development, Business License, and Police Departments, would administer and enforce the tobacco retailer permitting program. An initial permit fee of$550 is proposed, with an annual renewal fee of$450 that will off-set screening, education and monitoring costs. Counseling referral costs are expected to be included as part of the existing contract with Horizons Family Counseling Program. BACKGROUND The Youth Commission, Human Services Commission, Economic Vitality Committee and Planning Commission each made recommendations to the City Council regarding local tobacco restrictions. After considering these recommendations and receiving extensive public comment at its meetings of February 18th , and May 5th and 19th, the Council continued to June 16th adoption of an ordinance to: prohibit the sale of flavored tobacco, electronic smoking devices and related paraphernalia; prohibit new tobacco sales within 1,000 feet of public schools, parks and recreation facilities; and set minimum package sizes and prices for tobacco products. Past agenda materials are available at: http://weblink.cityofpleasantonca.gov/ DISCUSSION On May 5th, Council directed staff to return with a Municipal Code amendment to establish a tobacco retailer permitting requirement.2 Council had received testimony that jurisdictions with tobacco retailer permitting (also known as tobacco retailer licensing [TRL]) achieve better compliance with local, state and federal tobacco regulations. Council expressed interest in a mandatory permitting program with significant monetary fines, tobacco sales suspensions, and possible permit revocation for businesses which violate legal requirements. In Alameda County, the cities of Alameda, Albany, Berkeley, Dublin, Fremont, Hayward, Livermore, Oakland, San Leandro, Union City, as well as unincorporated Alameda County, have such licensing regulations. These jurisdictions require any business Staff had previously recommended that the City Council adopt a municipal code provision delegating authority to the City Manager to develop and administer a tobacco retailer permitting program. 7