TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
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Public Hearing to consider establishing Tobacco Retailer Permit fees and administrative fines for local tobacco control violations. Resolution No. 11624.
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2. Summary
Fees and citation fines must be established in the Master Fee Schedule for the annual Tobacco Retailer Permit and administrative citation fines associated with Ordinance No. 12-25.
3. Recommended Action
recommendation
1. Conduct and close Public Hearing.
2. Adopt Resolution No. 11624. A Resolution of the City Council of the City of Orange amending the City’s Master Fee Schedule establishing an annual permit fee and fines for the Tobacco Retailer Permit Program.
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4. Fiscal Impact
The cost associated with administering, monitoring, and implementing the Tobacco Retailer Permit program reflects an annual fee of $880 in staff time, to be assessed per retailer. This new fee is expected to generate approximately $91,500 per year to the City’s General Fund based on the current number of tobacco retailers doing business in the city. Actual revenue will be dependent upon the number of tobacco retailers that are ultimately issued permits under the Tobacco Retail Permit program.
5. Strategic Plan Goals
Goal 1: Maintain Strong Emergency and Safety Services
6. Discussion and Background
On June 10, 2025, the City Council introduced and conducted the First Reading of Ordinance No. 12-25 approving the establishment of a Tobacco Retailer Permit (TRP) program. The ordinance becomes effective 30 days after its Second Reading, which was approved at the June 24, 2025, City Council meeting.
The TRP program will require all tobacco retailers in the City of Orange to register with the City, comply with specific regulations, and obtain a specialized permit to legally operate. The program is designed to address local concerns, tailor regulations to community needs, and implement safeguards such as restricting sales near schools, parks, and other sensitive areas.
Sections 5.100.040 and 5.100.080 of the Orange Municipal Code authorize the adoption of fees and fines by resolution for administering, monitoring, and enforcing the TRP program. To support the implementation of the TRP program, the Community Development Department’s Code Enforcement Division is proposing an annual permit fee of $880 to be assessed per retailer. This fee represents the Orange Police Department and Code Enforcement Division staff cost recovery associated with the program’s administration, annual monitoring, and enforcement. There are approximately 104 businesses within the City engaged in the sale of tobacco and tobacco products, each of which would be subject to the proposed fee.
Cost recovery reflects:
1. Application intake and review.
2. Verification of required State licensing, seller’s permit, City Business License, and business location.
3. Business site inspection by Code Enforcement Officers.
4. Permit issuance for on-site posting and integration of permit information into City tracking and mapping databases.
5. Annual business compliance site visits performed by the Orange Police Department and Code Enforcement staff.
As outlined in the June 10, 2025, City Council staff report, the City may issue administrative citations and impose fines for violations of local tobacco retailing regulations. The proposed penalty schedule is as follows:
• No Tobacco Retailer Permit: $750 fine
• First Violation (within 5 years): $500 fine
• Second Violation (within 5 years): $1,000 fine
• Third Violation (within 5 years): $1,500 fine
• Fourth Violation (within 5 years): $2,000 fine
• Fifth Violation (within 5 years): $4,000 fine
• Subsequent Violations (within 5 years): $5,000 fine
7. ATTACHMENT
• Resolution No. 11624