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File #: 19-0465    Version: 1
Type: Consent - Staff Report Status: Agenda Ready
In control: City Council Regular Meeting
On agenda: 12/17/2019 Final action: 12/17/2019
Title: Consider Introducing an Ordinance to Prohibit the Sale of Tobacco Products in the City and Discuss and Provide Direction Relating to Incentives for Tobacco Retailers (City Manager Moe and City Attorney Barrow). a) INTRODUCE ORDINANCE NO. 19-0016 b) DISCUSS AND PROVIDE DIRECTION
Attachments: 1. Draft Ordinance No. 19-0016, 2. An Argument for Phasing Out Sales of Cigarettes (September 2019)
TO:
Honorable Mayor and Members of the City Council

THROUGH:
Bruce Moe, City Manager

FROM:
Quinn Barrow, City Attorney
Alexandria Latragna, Management Analyst

SUBJECT:Title
Consider Introducing an Ordinance to Prohibit the Sale of Tobacco Products in the City and Discuss and Provide Direction Relating to Incentives for Tobacco Retailers (City Manager Moe and City Attorney Barrow).
a) INTRODUCE ORDINANCE NO. 19-0016
b) DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council introduce Ordinance No. 19-0016 prohibiting the sale of tobacco products.
Body
FISCAL IMPLICATIONS:
There are fiscal implications as the City would no longer receive sales tax revenue from the 17 tobacco retailers. The amount is unknown at this time because sales tax is not tracked at the product level, rather it is reported at the business entity level which may include other un-related products. Revenue from issuing the Tobacco Retail permits, which totals approximately $3,100 annually, would be eliminated. The Fiscal Year 2019-2020 fee for these permits is $183 for a renewal application, paid on an annual basis by each retailer and $242 for an initial application.

BACKGROUND:
On October 1, 2019, City Council directed staff to draft an ordinance to prohibit the retail sale of tobacco products in the City.

Manhattan Beach currently requires businesses to obtain a tobacco retail license prior to selling any tobacco products. At the November 5, 2019, meeting, the City Council adopted Urgency Ordinance No. 19-0016-U prohibiting the sale of all flavored tobacco and electronic smoking devices. Many jurisdictions have prohibited the sale of flavored tobacco products; to date, Beverly Hills is the only jurisdiction in the United States that has prohibited the sale of all tobacco products; however, they exempted several cigar lounges.

DISCUSSION:
The proposed ordinance prohibits...

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