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9.32.190.6.1.) A person accused of a violation can request a hearing before the City's administrative hearing officer, with further appeal to the City Manager, whose decision would be final. (See proposed Section 9.32.180.) It is proposed that the administrative hearing officer and City Manager would have discretion to apply the settlement options of monetary fines and shorter-term suspensions instead of longer-term suspensions and revocation. (See proposed Section 9.32.190.C.) A settlement option might be appropriate, for example, if the business owner shows that a new retail clerk made an underage sale to a customer with a credible fake ID when the clerk did not correctly operate a new ID verification machine. Alameda County, Dublin and Livermore all have such alternative settlement options. Alternative: The Council may decide to not allow such alternative settlement options by directing the deletion of the proposed Section 9.32.190.C. In public testimony, Council was advised that when the county and state undertake undercover enforcement, if an underage sale is made, the retail clerk who made that sale is subject to a fine, and the business owner can also be penalized.' As seen in the table above, proposed penalties are focused on the permittee / business owner, and violations result in suspension of tobacco sales and permit revocation, or alternatively fines to be paid by the permittee / business owner. In terms of implementation, staff intends that the Community Development Department and Business License Division inform retailers of the permit requirement, and permit applications be processed by the Business License Division in consultation with the Community Development Department. The Community Development Department could make recommendations when not to issue or renew a permit (see proposed Sections 9.32.090 and 9.32.170.A.). For example: (i) if an applicant proposes a new tobacco store within 1,000 feet of a public school, that would be the basis to not issue a permit; or (ii) if a permittee did not have its state license renewed for the sale of tobacco products, that would be the basis to not renew a permit. The decision to not issue or not renew could be appealed to the City's administrative hearing officer, with further appeal to the City Manager, whose decision would be final. (See proposed Section 9.32.180.) Education would be a combination of the Business License and Code Enforcement Divisions. Code Enforcement would undertake compliance checks both on a complaint- Under the California STAKE Act(Cal. Business and Professions Code section 22952 et seq) penalties for sales to underage persons are as follows: First Violation: A civil penalty of$400 - $600 Second Violation (within a 5-year period): A civil penalty of$900 -$1,000 Third Violation (within a 5-year period): $1,200 - $1,800, plus a 45-day suspension of the license Fourth Violation (within a 5-year period): $3,000 - $4,000, plus a 90-day suspension of the license Fifth Violation (within a 5-year period): $5,000 - $6,000, plus a revocation of the license Additional civil penalties in the amount of$250 each for the third, fourth, and fifth violations are assessed by the California Department of Taxes and Fees Administration (CDTFA). The CDTFA may also suspend or revoke the retailer's license with 10 days' notice. Furthermore, a person cannot be subject to both STAKE Act penalties and Penal Code section 308(b) penalties for the same violation. 5