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HomeMy WebLinkAboutMINUTES - 03232010 - SD.3RECOMMENDATION(S): 1. OPEN a public hearing on increasing the annual tobacco retailer's license fee to $287.00, RECEIVE testimony, and CLOSE the hearing. 2. ADOPT the attached resolution setting a fee of $287.00 for an annual tobacco retailer's license. FISCAL IMPACT: An annual tobacco retailer’s license fee of $287.00 per license will allow the recovery of the following: a) Reasonable administrative costs incurred by the Tax Collector in issuing tobacco retailer’s licenses; b) Reasonable costs of inspections performed by Contra Costa Health Services staff to determine retailer compliance with license conditions. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/23/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Mary N. Piepho, District III Supervisor Contact: Wendel Brunner, M.D., 313-6712 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: March 23, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Tasha Scott, Barbara Borbon, Jaime Jenett SD. 3 To:Board of Supervisors From:William Walker, M.D., Health Services Director Date:March 23, 2010 Contra Costa County Subject:Tobacco Retailer License Fees BACKGROUND: On January 28, 2003, the Board of Supervisors unanimously adopted the County’s Tobacco Retailer’s License Ordinance, County Ordinance Code chapter 445 –10. The ordinance prohibits any retailer, individual, or entity from selling or offering for sale any tobacco products in the unincorporated area without first obtaining a license. The ordinance also authorizes Health Services to suspend or revoke a license after notice and a hearing if the licensee is not in compliance with license conditions. The ordinance authorizes a fee for a tobacco retailer’s license. The ordinance requires the fee to reflect the reasonable cost of providing services necessary to the licensing activities of the ordinance. The fees prescribed by the ordinance are regulatory permit fees. On May 11, 2004, the Board of Supervisors set the Tobacco Retailer License Fee at $160.00. This fee allowed for the recovery of the administrative costs incurred by the Tax Collector to administer the license and the administrative and compliance related costs incurred by Contra Costa Health Services. CCHS has enforced the ordinance, as well as the County’s Tobacco-Free Youth Ordinance which bans the self-service display of tobacco products. Since the implementation of the Tobacco Retailer Licensing Ordinance, the illegal sales rate of tobacco to minors has decreased from 37% to 7%. The Licensing Fee has remained at $160.00 since 2004, and costs have risen since that time. Contra Costa Health Services has determined that a license fee of $287 would allow Health Services to recover the cost of providing services necessary to the licensing activities of the ordinance. A table showing the Health Services Department’s fee calculations is attached. Of the $287 amount, $25 would allow the recovery of reasonable administrative costs incurred by the Tax Collector, who is authorized to issue tobacco retailer’s licenses. The remainder of the $287 fee would allow Health Services to recover the cost of performing regulatory activities incident to the issuance of the licenses. Health Services anticipates inspecting every retailer once during the fiscal year. Health Services also anticipates performing 50 re-inspections of retailers who are not in compliance with license conditions after an initial inspection. Health Services has identified a separate funding source for law enforcement to perform law enforcement activities associated with Penal Code section 308. The increase in the annual license fee would not affect two other fees currently charged by Health Services. Resolution No. 2003/255 authorizes Health Services to charge a hearing fee of $348 for holding a license suspension or revocation hearing, and authorizes Health Services to charge a fee of $112 per inspection for inspecting retailers whose licenses have been suspended or revoked to determine whether they are selling tobacco in violation of the suspension or revocation. The publication requirements of Government Code section 6062a have been met. A notice of this public hearing appeared in the Contra Costa Times on March 12, 2010 and March 18, 2010, CLERK'S ADDENDUM CLOSED the hearing; and ADOPTED Resolution No. 2010/160 increasing the annual tobacco retailer’s license fee from $160 to $287. ATTACHMENTS Resolution No. 2010/160 G:\C&G DIRECTORY\NON CONTRACTS\Revised Fee Schedule 3-11-10.xls