Title
Report to Council Following the Modifications of Sections 5.138.040 and 5.138.060 of Sacramento City Code Relating to Tobacco Retailer Licensing
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FileID
File ID: 2024-01730
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Location
Location: Citywide
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Recommendation
Recommendation: Review and comment on an update on the outcomes of the amendments to Title 5 of the City Code relating to tobacco retailing.
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Contact
Contact: Shawn Bartosh, Code Enforcement Manager, (916) 808-8673, sbartosh@cityofsacramento.org; Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183, plemos@cityofsacramento.org; Community Development Department
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Presenter
Presenter: Shawn Bartosh, Code Enforcement Manager, (916) 808-8673, sbartosh@cityofsacramento.org, Community Development Department
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Attachments
Attachments:
1-Description/Analysis
2-Map TRLs as of 12-1-2020
3-Map TRLs as of 10-17-24 with healthy food exemptions
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Description/Analysis
IssueDetail
Issue Detail: On April 16, 2019, City Council adopted amendments to Title 5 of the City Code relating to tobacco retailing to strengthen regulations. The amendments, among many things, included a prohibition of flavored tobacco products and a distance requirement between tobacco retailers.
On August 27, 2019, the City Council amended Title 17 of the City Code to require a conditional use permit (CUP) from the Zoning Administrator (ZA) to retail tobacco for 1) all tobacco retailers with stores 15,000 square feet or less in size; and 2) tobacco retailers that are greater than 15,000 square feet in size if they devote more than 250 square feet of shelving space to tobacco products and associated tobacco products and paraphernalia.
The CUP process allows the decisionmaker to consider a variety of factors, including the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood. Big stores that are larger than 15,000 square feet in size and devote less than 250 square feet to tobacco products are allowed by right but would be denied a tobacco retailer license if another retailer existed within 1,000 feet.
The intent of the amendments in Title 5 and 17 was to reduce tobacco retailer density by reducing or eliminating inequities in the location and distribution of tobacco retailers. Inadvertently, staff was then unable to issue a tobacco retailer license to businesses that submitted a planning application and initiated the development process before the amendments went into effect because of the proximity requirement.
On October 27, 2020, City Council adopted three amendments to Chapter 5.138. The first amendment exempts a location from the proximity requirement if a planning entitlement application was submitted prior to January 1, 2020. The second amendment exempts a location from the proximity requirement if the licensee devoted no more than five percent of total shelf space to tobacco product and sold fresh fruits and vegetables, dairy products, meat, fish or poultry, and breads and cereals (the “healthy food exemption”). The third amendment allows a retailer to retain a tobacco license in the event a retailer closes for up to year, provided the closure is for renovation or construction. Prior to this amendment, a tobacco retail license could be revoked if a retailer ceased operating for more than 60 days, regardless of the reason.
There has been an increase in the number of Tobacco Retailer Licenses (TRLs) issued and active within the City of Sacramento since the adoption of the healthy food exemption. The current number of TRLs as of October 17, 2024, is 311 (see map at Attachment 2), compared to the 240 that were issued and active on December 1, 2020 (see map at Attachment 1), an increase of 71 new permits during this period. Of these, 27 utilized the healthy food exemption to operate within the proximity of another permitted location.
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PolicyConsiderations
Policy Considerations: The City of Sacramento’s 2040 General Plan encourages a healthy lifestyle for Sacramento residents to improve overall public health. The Environmental Justice Goal EJ-2 states that a goal of the General Plan is to have “Equitable access to fresh, healthy and affordable food and wider access to healthy food resources in disadvantaged community.” Policy EJ-2.16 goes further to say that “The City should discourage the establishment of new drive-through restaurants, alcohol permits for off-site sales, and tobacco sales points near food desserts, schools, and pedestrian priority areas.”
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The subject of this report does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project under the California Environmental Quality Act (CEQA). (Public Resources Code sections 21065 and 21080 and CEQA Guidelines section 15378(b)(4).) No CEQA review is required. CEQA Guidelines section 15060(c)(3).
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Sustainability
Sustainability: There are no sustainability considerations applicable to amending City Code relating to tobacco retailers.
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RationaleforRecommendation
Rationale for Recommendation: In response to Council direction, staff has prepared this report to assess the outcomes of the amended ordinance, which will assist Council in determining whether the current program of tobacco retailer regulation is achieving Council’s goals.
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FinancialConsiderations
Financial Considerations: None.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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