Los Angeles Municipal Code Art. 6.9 Tobacco Retailer’s Permit

(Article Added by Ord. No. 173,260, Eff. 6/25/00; Title Added by Ord. No. 179,436, Eff. 1/28/08.)

Section

• 46.90 Definitions.

• 46.90.1 Flavored Tobacco Sales Prohibited.

• 46.90.2 Hookah Lounge.

• 46.91 Tobacco Retailer’s Permit Required.

• 46.92 Application Procedure.

• 46.93 Issuance of Permit.

• 46.94 Display of Permit.

• 46.95 Fees for Permit.

• 46.96 Renewal of Permit; Delinquency.

• 46.97 Permits Not Transferable.

• 46.98 Violations.

• 46.99 Administrative Penalties.

• 46.100 Right to Administrative Review and Procedures.

• 46.101 Severability.

(Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) “Arm’s-Length Transaction” shall mean a Sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction, a Sale between relatives, related entities or partners, or a Sale for which a significant purpose is avoiding the effect of a violation of this article is not an Arm’s-Length Transaction.

(b) “Delivery Sale” shall mean the Sale of any Tobacco Product to any person for personal consumption and not for resale when the Sale is conducted by any means other than an in-person, over-the-counter Sale from a Tobacco Retailer in a licensed location. Delivery Sale includes the Sale of any Tobacco Product when the Sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery Sale includes delivery by a licensee or third party by any means, including curbside pickup.

(c) “Electronic Smoking Device” shall mean any device that may be used to deliver any aerosolized or vaporized substances to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, vape pen, or e-hookah. Electronic Smoking Device includes any component part of or accessory to the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine.

(d) “Flavored Tobacco Product” shall mean any Tobacco Product that imparts a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to, or during the consumption of, a Tobacco Product, including, but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, molasses, or any candy, dessert, alcoholic beverage, herb, or spice. A public statement or claim made or disseminated by the Tobacco Retailer or manufacturer of a Tobacco Product, or by any person authorized or permitted by the Tobacco Retailer or manufacturer to make or disseminate public statements concerning such Tobacco Product, that such Tobacco Product imparts a taste or smell other than tobacco shall constitute presumptive evidence that a Tobacco Product is a Flavored Tobacco Product.

(e) “Hookah Lounge” shall mean a business establishment that qualifies as a smokers’ lounge, as defined in California Labor Code Section 6404.5(e) and in which the entire premises is dedicated exclusively to the Smoking of Shisha or Shisha Tobacco. To qualify as a Hookah Lounge, the business establishment must be in compliance with all of the limitations in Section 46.90.2 of this Code and be in possession of a valid Tobacco Retailer’s Permit, pursuant to Section 46.91 of this Code. A business establishment is not eligible to be a Hookah Lounge if it:

(1) Has a license, or engages in activity for which it should have a license, issued by the California Department of Alcohol and Beverage Control (ABC) to sell alcohol; or

(2) Has a permit, or engages in activity for which it should have a Public Health Food Facility Permit, issued by the Los Angeles County Department of Public Health.

(f) “Hookah Pipe” shall mean a water pipe or other pipe used to smoke Shisha or Shisha Tobacco, which typically has a head, a metal body, a water bowl, and a flexible hose with a mouthpiece that a person puts into their mouth to inhale smoke.

(g) “Proprietor” shall mean a person with ownership or managerial interest in a Tobacco Retailing business. An ownership interest shall be deemed to exist when a person has 10 percent or greater interest in the stock, assets or income of a Tobacco Retailing business. A managerial interest shall be deemed to exist when a person can, does, has or shares in the ultimate control over the day-to-day operations of the Tobacco Retailing business.

(h) “Sale”, “Sell”, or “Sells” shall mean any transaction where, for any consideration, ownership of a Tobacco Product is transferred from one person to another, including, but not limited to, any transfer or title or possession for consideration, exchange, or barter, in any manner or by any means.

(i) “Shisha”, “Shisha Tobacco”, “Shisha Tobacco Product”, or “Shisha Tobacco Products” shall include any Tobacco Product or substance only capable of being smoked in a Hookah Pipe whether or not labeled by the manufacturer as hookah tobacco, Shisha, water pipe tobacco, maasel, narghile, or argileh. Shisha Tobacco does not include any Tobacco Product used or capable of use in an Electronic Smoking Device such as, but not limited to, an electronic Hookah Pipe.

(j) “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, or other plant, whether natural or synthetic, that is intended for inhalation. Smoking includes using an Electronic Smoking Device.

(k) “Tobacco Product” or “Tobacco Products” shall mean:

(1) Any product or products containing, made of, or derived from tobacco or nicotine whether natural or synthetic that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any means, including, but not limited to, a cigarette, a cigar, or a pipe and also includes chewing tobacco, snuff, or snus;

(2) Any substance intended for Smoking in a Hookah Pipe and marketed or labeled as a synthetic or non-tobacco Shisha Product whether or not the product contains nicotine;

(3) Any Electronic Smoking Device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or

(4) Any ancillary item, component, part, or accessory of Subsections (k)(1), (k)(2), or (k)(3) hereof, whether or not the ancillary item, component, part, or accessory contains tobacco or nicotine, including, but not limited to, a filter, rolling paper, blunt or hemp wrap, tobacco pipe, or mouthpiece.

Tobacco Product does not mean a drug, device, or combination product for cessation that is authorized for Sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. Tobacco Product also does not mean a cannabis product as defined by Health and Safety Code Section 11018.1 or cannabis as defined by Business and Professions Code Section 26001, as these laws may be amended from time to time.

(l) “Tobacco Retailer” shall mean any person or Proprietor who Sells, offers for Sale, or exchanges or offers to exchange a Tobacco Product to consumers for any form of consideration. “Tobacco Retailing” shall mean engaging in any of the above activities. The definitions here are without regard to the quantity of Tobacco Product sold, offered for Sale, exchanged, or offered for exchange and without regard to whether the Sale is wholesale or retail.

(Added by Ord. No. 187,525, Eff. 7/16/22.)

(a) Pursuant to Section 46.91, Tobacco Products may only be sold at a location that has been issued a City Tobacco Retailer’s Permit. It shall be unlawful to Sell or offer for Sale, or possess with the intent to Sell, any Flavored Tobacco Product at a permitted Tobacco Retailing location.

(b) Exceptions: The Sale of Shisha, Shisha Tobacco and Shisha Tobacco Products, which qualify as Flavored Tobacco Products, is permissible at any Hookah Lounge with a valid Tobacco Retailer’s Permit that was issued pursuant to Section 46.91 of this Code on or before the effective date of this section. Such Sale is also permissible in a Bar, as defined in Section 41.50 A.1. of this Code, provided that: (1) the Bar has a valid Tobacco Retailer’s Permit that was issued pursuant to Section 46.91 of this Code on or before the effective date of this section; (2) the Bar has an adjacent unenclosed outdoor space dedicated to the Smoking of Shisha or Shisha Tobacco; and (3) no Smoking is allowed inside of the Bar. An unenclosed outdoor space is one in which there is a complete absence of the entire ceiling or at least one wall. An opening in the ceiling or a wall of the outdoor space is not considered a complete absence.

(c) This section shall be operative on January 1, 2023.

(Added by Ord. No. 187,525, Eff. 7/16/22.)

It shall be unlawful for any Hookah Lounge to engage in, conduct, or carry on, in or upon any premises within the City, the business of Selling Shisha Tobacco, unless the following conditions are met:

(a) The Hookah Lounge has a valid Tobacco Retailer’s Permit, pursuant to Section 46.91 of this Code;

(b) Entry is prohibited to anyone under the age of 21 years;

(c) A sign is posted at each entrance reading “No one under the age of 21 years is allowed on these premises”;

(d) No person who is obviously intoxicated or under the influence of any intoxicating drug or beverage shall be permitted entry;

(e) The Hookah Lounge must have a stand- alone ventilation system that is not shared with any other business or any other portion of the building in which the Hookah Lounge is located; and

(f) The Hookah Lounge shall be in compliance with all City, state, and federal laws.

(Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) It shall be a misdemeanor for any person or Proprietor within the City of Los Angeles to act as a Tobacco Retailer at a location for which a valid Tobacco Retailer’s Permit has not been issued pursuant to this article. A separate Tobacco Retailer’s Permit is required for each location at which Tobacco Retailing occurs or has occurred.

(b) No Tobacco Retailer’s Permit shall be issued for residences, newsstands, or locations where engaging in Tobacco Retailing is prohibited by federal, state, or local law. No Tobacco Retailer’s Permit shall be issued to authorize Tobacco Retailing at any place other than a fixed location. Tobacco Retailing from any non-permanent location, including from a vehicle or cart, is prohibited.

(c) All retail Sales of Tobacco Products shall be conducted in-person in the location for which the Tobacco Retailer’s Permit was issued. No Tobacco Retailer or any of the Tobacco Retailer’s agents or employees may engage in the Delivery Sale of Tobacco Products, or knowingly or recklessly Sell or provide Tobacco Products to any person who intends to engage in the Delivery Sale of the Tobacco Product in the City of Los Angeles.

(d) Notwithstanding the possession by a person, Tobacco Retailer, or Proprietor of a license from the State of California as a Tobacco Products wholesaler or distributor, any Tobacco Retailer, Proprietor or person who does business from a fixed location in the City of Los Angeles must obtain a Tobacco Retailer’s Permit pursuant to this article.

(e) No person or Proprietor engaged in Tobacco Retailing or the wholesale distribution of Tobacco Products shall sell a Tobacco Product to another person without first verifying by means of government-issued photographic identification that the recipient is at least 21 years of age.

(f) No person or Proprietor shall distribute a free or nominally priced Tobacco Product.

(g) A person or Proprietor required to have a Tobacco Retailer’s Permit under Subsection (a) or (d) hereof without a valid Tobacco Retailer’s Permit, including a person or Proprietor whose Tobacco Retailer’s Permit has been suspended or revoked, shall keep all Tobacco Products out of public view. The public display of Tobacco Products in violation of this subsection shall constitute Tobacco Retailing without a Tobacco Retailer’s Permit.

(h) A person or Proprietor required to have a Tobacco Retailer’s Permit under Subsection (a) or (d) without a valid Tobacco Retailer’s Permit, including a person or Proprietor whose Tobacco Retailer’s Permit has been suspended or revoked, shall not display any advertisement relating to a Tobacco Product that promotes the Sale or distribution of such products from the Tobacco Retailer’s permitted location or that would lead a reasonable consumer to believe that such products can be obtained at the Tobacco Retailer’s permitted location.

(i) No Tobacco Retailer’s Permit shall be issued, and no existing Tobacco Retailer’s Permit may be renewed, to authorize Tobacco Retailing at a location licensed for commercial cannabis activity by the State of California under Business and Professions Code Division 10.

(j) Each day that a person or Proprietor Sells or offers for Sale a Tobacco Product without a valid Tobacco Retailer’s Permit shall constitute a separate violation of this section.

(Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) An application for a Tobacco Retailer’s Permit shall be submitted to the Office of Finance by any Proprietor of a business seeking a Tobacco Retailer’s Permit. Each applicant shall be responsible for reviewing the conditions of conducting Tobacco Retailing Sales within the City of Los Angeles and shall agree to abide by the conditions by signing the application under penalty of perjury. Every application shall be submitted on a form supplied by the City and shall contain the following information:

(1) The business name, address, and telephone number of the location for which the Tobacco Retailer’s Permit is sought, as well as any website address, Uniform Resource Locator (URL), or social media account of the business;

(2) The name, mailing address, telephone number, and email address of every Proprietor and any person authorized to receive communications and notices required by or authorized by this article. If incomplete information is supplied, each Proprietor shall be deemed to consent to the provision of notice at the business address provided on the application for the Tobacco Retailer’s Permit; and

(3) Such other information as the City Attorney deems necessary for implementation and enforcement of this ordinance.

(b) A Tobacco Retailer’s Permit must be obtained prior to the retail or wholesale Sale of any Tobacco Product. A new Tobacco Retailer’s Permit must be obtained upon change of ownership or upon change of form of ownership prior to the retail or wholesale Sale of any Tobacco Product, including, but not limited to, a Proprietor becoming a corporation.

(Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) The Tobacco Retailer’s Permit shall state the following on its face:

(1) The name, address, telephone number, and email address for each Proprietor;

(2) Doing Business As (D.B.A.);

(3) Los Angeles Municipal Code section regulating Tobacco Retailer’s Permits;

(4) Business address and mailing addresses;

(5) Date permit was issued and permit expiration date; and

(6) Account number.

(b) Upon the receipt of an application for a Tobacco Retailer’s Permit and fee payment, the Office of Finance shall issue a Tobacco Retailer’s Permit, unless the City Attorney demonstrates one of the following bases for denial:

(1) The application is incomplete or inaccurate;

(2) The application seeks authorization for Tobacco Retailing at a location for which a suspension or revocation is in effect or pending pursuant to Section 46.99;

(3) The application seeks authorization for Tobacco Retailing that is unlawful pursuant to any section of this article or any federal, state, or local law; or

(4) Any other suitable reason the granting of a Tobacco Retailer’s Permit to the applicant is not consistent with the public health and welfare, including the applicant’s history of noncompliance with this article and other laws relating to the Sale of Tobacco Products.

(c) A Tobacco Retailer’s Permit issued in error or on the basis of false or misleading information supplied by a Proprietor may be revoked.

(d) City Attorney’s Responsibilities. It shall be the responsibility of the City Attorney or the City Attorney’s designee to enforce all provisions set forth in this article, which includes, but is not limited to, the following:

(1) Investigate and prosecute Tobacco retailers or others required to obtain a Tobacco Retailer’s Permit under this article who fail to obtain and/or maintain a Tobacco Retailer’s Permit.

(2) Conduct any and all audits that may be necessary in the investigation of Tobacco retailers and any entity required to obtain a Tobacco Retailer’s Permit.

(e) Office of Finance Responsibilities. It shall be the duty of the Office of Finance to administer and process the Tobacco Retailer’s Permit application; mail renewal notices to Tobacco Retailer permittees; and deposit funds collected for each Tobacco Retailer’s Permit into the General Fund.

(Amended by Ord. No. 183,819, Eff. 9/30/15.)

Any Tobacco Retailer's Permit issued pursuant to this article shall be prominently displayed in public view at the location for which it is issued. A violation of this section shall be punishable as an infraction.

(Amended by Ord. No. 182,823, Eff. 1/22/14.)

(a) A fee shall be charged for a Tobacco Retailer’s Permit. The permit fee for calendar year 2018 and 2019 shall be $300. The permit fee for calendar year 2020 and thereafter shall be $437. All fees are non-refundable, except as required by law, and shall be used exclusively to reimburse the costs incurred for the program. Fees shall not be prorated. All fees collected shall be deposited into the General Fund. (Amended by Ord. No. 186,099, Eff. 6/13/19.)

(b) A $5.00 charge shall be imposed for the issuance of a duplicate permit upon the permittee or an authorized representative stating, in a properly executed affidavit of loss, that the original permit has been lost or destroyed. This charge shall be deposited into the General Fund.

(Amended by Ord. No. 182,823, Eff. 1/22/14.)

A Tobacco Retailer’s Permit is invalid unless the required fee has been paid in full and the term of the permit has not yet expired. The term of the permit shall be one year, and the permit shall be deemed expired on December 31st of the year for which the permit was issued. Renewal statements shall be due and payable November 1st of each year and shall be delinquent by January 1st of the next year. Delinquent renewals shall be charged an additional sum equal to 25 percent of the required permit fee. Such additional sum shall become a part of the fee required by the Office of Finance.

(Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) Except pursuant to Subsection (b) hereof, a Tobacco Retailer’s Permit is not transferable. If a new person or Proprietor acquires a business engaged in Tobacco Retailing, the person or Proprietor must apply for a new Tobacco Retailer’s Permit before engaging in the Sale of any Tobacco Product.

(b) The transfer or Sale of a Hookah Lounge in the possession of a valid Tobacco Retailer’s Permit issued prior to the effective date of this ordinance does not automatically transfer the Tobacco Retailer’s Permit associated with the Hookah Lounge. However, the transferee or prospective purchaser of a Hookah Lounge may apply for a new Tobacco Retailer’s Permit and, if approved, will be deemed to first have been issued the Tobacco Retailer’s Permit for purposes of Section 46.90.1(b) prior to the effective date of this section.

(Title and Section Amended by Ord. No. 187,525, Eff. 7/16/22.)

(a) Except as precluded by state or federal law, any violation of this article, including Sections 46.90.1 or 46.90.2 of this Code, are subject to the penalties set forth in Section 11.00 of this Code.

(b) An administrative violation shall be found when the City Attorney is in receipt of an official record of any court or governmental agency that demonstrates a Tobacco Retailer, or any of the Tobacco Retailer’s agents or employees, has violated any federal, state, or local law, including this Code, applicable to Tobacco Retailing, or has allowed Smoking in an enclosed place of employment in violation of California Labor Code Section 6404.5. An official record of any court or governmental agency includes, but is not limited to, an abstract from the State of California Department of Public Health that a Tobacco Retailer has paid a civil monetary penalty imposed for violating the Stop Tobacco Access to Kids Enforcement Act (Business and Professions Code Division 8.5), or a certified court docket reflecting a conviction of a criminal charge involving Tobacco Retailing or California Labor Code Section 6404.5.

(c) The violations set forth in this section are cumulative to, and in addition to, any other violations of federal, state, or local law, and shall be punished as specified in Section 46.99 of this Code.

(Amended by Ord. No. 183,819, Eff. 9/30/15.)

(a) Any Tobacco Retailer determined by the City Attorney or designee to have violated any provision of this article shall be subject to the penalties of this section. The City Attorney or designee shall notify the Tobacco Retailer of any initial determination of violation of this article, and shall specify the violation and the penalty imposed, including the effective date of the suspension, if any. The notice shall further state that the Tobacco Retailer may, within 15 calendar days of the date of the notice, submit to the City Attorney any written or documentary evidence to contest the initial determination of violation. After receiving and considering the evidence provided, the City Attorney or designee shall prepare a final written decision with findings, and shall serve the final determination upon the Tobacco Retailer. Upon written request, the Tobacco Retailer shall have the right to receive copies of any records upon which the final determination is based. The final determination shall be served within 30 calendar days of the initial determination. (Amended by Ord. No. 187,525, Eff. 7/16/22.)

(b) Administrative penalties shall be imposed as follows:

(1) For the first violation in any five-year period, the Tobacco Retailer’s Permit shall be suspended for 30 calendar days;

(2) For the second violation in any five-year period, the Tobacco Retailer’s Permit shall be suspended for 90 calendar days;

(3) For a third violation in any five-year period, the Tobacco Retailer’s Permit shall be suspended for 120 calendar days;

(4) For a fourth violation in any five-year period, the Tobacco Retailer’s Permit shall be revoked. The Office of Finance shall not issue a Tobacco Retailer’s Permit to a location at which a Tobacco Retailer’s Permit has been revoked unless a period of three years has passed since the date of the issuance of the revocation, and the tobacco retailer attends and completes a tobacco retailer education program provided by the City Attorney.

(c) For the duration of any Tobacco Retailer’s Permit suspension, the tobacco retailer shall clearly and conspicuously post a Notice of Suspension sign provided by the City Attorney at each customer entrance. Failure to post the Notice of Suspension sign during a suspension period shall be punishable as an infraction.

(d) Notwithstanding any other provision of this article, prior violations, permit suspension periods and permit revocation shall continue to apply to a location unless the business engaged in tobacco retailing at that location has been fully transferred to a new proprietor with no financial relationship to the former proprietor, and the new proprietor provides the City Attorney with clear and convincing evidence that the new proprietor has acquired or is acquiring the business in an arm’s-length transaction.

(1) The City Attorney’s determination of an arm’s-length transaction shall be provided to the Office of Finance in written form and waive the requirements for reinstatement of a revoked permit listed in Subsection (b)(4) of this section.

(Amended by Ord. No. 182,823, Eff. 1/22/14.)

(a) The tobacco retailer shall have the right to an administrative review of the final determination of the City Attorney. The administrative review shall be conducted by the Police Permit Review Panel as authorized by Section 102.13.01 of the Los Angeles Municipal Code. To obtain an administrative review of the City Attorney’s final determination, the tobacco retailer must notify the City Attorney, in writing, within 15 calendar days of its receipt of the City Attorney’s final determination. The timely filing of a request for an administrative review shall hold in abeyance any permit suspension until the administrative review is heard and decided.

(b) Notice of Review. If a review is requested pursuant to Section 46.100(a) the City Attorney shall provide written notice, within 45 calendar days of its receipt of the request, to the tobacco retailer of the date, time, and place of the review.

(c) Review Procedure. The administrative review hearing shall be recorded by a certified court reporter. During the hearing, no evidence or testimony shall be presented to the Police Permit Review Panel. The purpose of the Panel’s review is to ascertain whether the final determination of the City Attorney was supported by the administrative record. A decision shall be rendered by the Police Permit Review Panel at the conclusion of the hearing. Notice of the decision shall be mailed to the tobacco retailer who requested the review.

(d) Finality of The Police Permit Review Panel’s Decision. The decision of the Police Permit Review Panel shall be the final decision of the City.

(Amended by Ord. No. 182,823, Eff. 1/22/14.)

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance or the rules adopted hereby. The City Council of the City of Los Angeles hereby declares that it would have adopted independently each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.